Mortgage Protection Plans

Jul 06, 2005 1 Replies
F

I was looking at my mortgage protection plans (I have two) and even though they do not explicitly mention it in their policies I wondered if I was allowed to make claims on both of them in the event of sickness/redundancy/disability?



One of the advisors at the time said it didn't matter if it was for a mortgage or not. So I am now a bit confused.



If I took out one of those "monthly payment protection" plans which are not exclusively linked to a mortgage, would that cause a conflict with the two above policies?



Thanks,



Shimei



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M

You may claim under both of them, but without knowing the level of cover, possibly not the full amount that you are covered for. Generally the total from all policies would be restricted to 65% of your gross pre-incapacity earnings.

It depends upon the provider, although they are designed to cover mortgage payments, not all contracts are specifically linked to the mortgage. So long as you not exceeding the maximum benefit payable, you may be able to claim under both.

Be aware that if you are paying for two limited accident sickness unemployment type covers, you may be able to get superior permanent health insurance and redundancy cover for little or no more monthly cost.

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