catherine.c

protection policies

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    Someone at work told me that if you have mortgage protection and income protection that it is a waste of money as if you were unable to work then only one of the policies would pay out, the other would not as you were getting the other one (if that makes sense). If this is true (and in her experience it obviously was) I would encourage any of you that have more than one protection policy to check it out!

    Catherine

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    The only surprise about that is the suggestion that someone would take out two policies covering the same thing. Surely you'd only have two to complement each other (or fill in the gaps of the other policy), not provide the same thing e.g. one protecting income if the policy holder became sick or incapacitated, the other covering the mortgage should the person lose their job.

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    If you cannot work, you have other financial commitments such as putting food on the table / water / heating etc. If you have paid into another policy for mortgage repayments I would expect it to pay exactly that! Maybe I am naive but I was quite shocked when I realised that this is not so (not that I have a policy). Also - naive again - I would have hoped that this would have been pointed out by the policy sellers.

    Catherine

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