Over Insured

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
3 replies 424 views
LAPORTS1LAPORTS1 Forumite
16 Posts
Fifth Anniversary 10 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
Hi All,
Apologies if this is a stupid question:

Through my work I get 'death in service' cover of 4 times my annual salary and income protection insurance should I have a serious illness (70% of total salary). I also have another private policy which covers death and income protection for both myself and my wife (similar payout values).

Recently I've learned that you cannot have 2 income protection policies on the basis that ifinancially it could be better to remain off work rather than return (makes sense I suppose).

On that basis, I assume that I have been over-insured on the income protection front but my question is would both 'death-in-service' policies pay out for my wife should I kick the bucket?

Thank you
LAPORTS

Replies

  • SonOfSonOf Forumite
    2.6K Posts
    1,000 Posts Second Anniversary
    ✭✭✭✭
    Recently I've learned that you cannot have 2 income protection policies on the basis that ifinancially it could be better to remain off work rather than return (makes sense I suppose).

    You can have multiple income protection plans. Its the total payout that matters.
    but my question is would both 'death-in-service' policies pay out for my wife should I kick the bucket?

    You can have as much life assurance as you like (subject to underwriting issues and minor caveats that are unlikely to apply here)
  • Weighty1Weighty1 Forumite
    1K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
    ✭✭✭
    SonOf wrote: »
    You can have multiple income protection plans. Its the total payout that matters.

    Whilst this is correct, if your work cover provides 70% of your income there's not really any scope for any additional private cover.

    The death in service wouldn't be an issue though.
  • LAPORTS1LAPORTS1 Forumite
    16 Posts
    Fifth Anniversary 10 Posts Combo Breaker
    Thanks folks. Much appreciated!
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals