Double income protection

Luke451

Hi,

let's say that I have 2 income protection, one covers specific things, the other is more general, but regardless, can I have more than one income protection and then decide where to apply in case of a claim? Or do I need to claim both by the law and then eventually they split the payment??

Luke451

Moreover, is it legal?
I remember that multiple life insurances are illegal, and potentially they will void each other, but not the others.

HappyHarry

Multiple life assurances are not illegal - they are very common.

Income protection will generally pay to an upper limit - typically between 60% and 75% of your previous income. If your policies are possibly going to pay a benefit in excess of their individual maximum payout - I.e. your income is in excess of their maximum limits - then they will restrict the benefits they pay.

HappyHarry

Luke451 said:

Hi,

let's say that I have 2 income protection, one covers specific things, the other is more general, but regardless, can I have more than one income protection and then decide where to apply in case of a claim? Or do I need to claim both by the law and then eventually they split the payment??

Explain what you mean by “covers specific things”. This sounds more like a critical Illness policy than an income protection policy.

TELLIT01

Generally, if you have 2 insurance policies covering the same risk, each would only pay a proportion of the amount. 

Luke451

HappyHarry said:

Luke451 said:

Hi,

let's say that I have 2 income protection, one covers specific things, the other is more general, but regardless, can I have more than one income protection and then decide where to apply in case of a claim? Or do I need to claim both by the law and then eventually they split the payment??

Explain what you mean by “covers specific things”. This sounds more like a critical Illness policy than an income protection policy.

Yeah I know , but not may cover the same things, they say they do, but they don't, I refer to sports, or any secondary job you enroll later etc, all things that they intentionally don't cover, but they don't tell you.

I'm not sure how these things play out in the court, but it's against their wording because they always mention that you don't need to tell them about life changes, I wonder if that stands...

HappyHarry

Luke451 said:

HappyHarry said:

Luke451 said:

Hi,

let's say that I have 2 income protection, one covers specific things, the other is more general, but regardless, can I have more than one income protection and then decide where to apply in case of a claim? Or do I need to claim both by the law and then eventually they split the payment??

Explain what you mean by “covers specific things”. This sounds more like a critical Illness policy than an income protection policy.

Yeah I know , but not may cover the same things, they say they do, but they don't, I refer to sports, or any secondary job you enroll later etc, all things that they intentionally don't cover, but they don't tell you.

I'm not sure how these things play out in the court, but it's against their wording because they always mention that you don't need to tell them about life changes, I wonder if that stands...

Why would they not cover sports or second jobs? Why would it ever play out in court?

I think you are being a little paranoid. If you answer the underwriting questions honestly when you take out the policy, there should not be any issues. Of course life changes occur - it would be very unusual if they didn't. However, insurance is agreed at time the policy begins, not when later life changes happen.

Luke451

HappyHarry said:

Luke451 said:

HappyHarry said:

Luke451 said:

Hi,

let's say that I have 2 income protection, one covers specific things, the other is more general, but regardless, can I have more than one income protection and then decide where to apply in case of a claim? Or do I need to claim both by the law and then eventually they split the payment??

Explain what you mean by “covers specific things”. This sounds more like a critical Illness policy than an income protection policy.

Yeah I know , but not may cover the same things, they say they do, but they don't, I refer to sports, or any secondary job you enroll later etc, all things that they intentionally don't cover, but they don't tell you.

I'm not sure how these things play out in the court, but it's against their wording because they always mention that you don't need to tell them about life changes, I wonder if that stands...

Why would they not cover sports or second jobs? Why would it ever play out in court?

I think you are being a little paranoid. If you answer the underwriting questions honestly when you take out the policy, there should not be any issues. Of course life changes occur - it would be very unusual if they didn't. However, insurance is agreed at time the policy begins, not when later life changes happen.

Phone your income protection provider and see if they cover you going up on top of the Everest, or making a rocket test as a pilot (more luckily to just die in an accident but it's a decent example anyway).

I'm not sure how they would behave, but I see 2 options:

1. They tell you that they won't cover, even though they should as you say or as I saw written in the contract

2. They tell you to cancel the policy

Either way, they don't want to cover for things that they don't usually cover when doing the underwriting, in that case I guess it would only be a battle to get cover if you claim.

HappyHarry

Option 3. They tell you that you are covered.

If you have answered the questions correctly at the time of underwriting then you should be covered.

The questions at underwriting ask about dangerous activities that you do or intend to do. If you take up a dangerous sport, or even smoking, later in life it doesn't void the policy.

kingstreet

What do you mean by "income protection?"

Permanent health insurance - long-term?
Accident & sickness - short-term?

Luke451

kingstreet said:

What do you mean by "income protection?"

Permanent health insurance - long-term?
Accident & sickness - short-term?

Permanent income protection, or called permanent health insurance by some, but it's essentially an income up to retirement age.