# Life Insurance, Payment Protection, VHI Query



## jb81 (21 Mar 2013)

Hi There

Like almost everyone else in the country we are trying to find ways of saving the pennies these days. And insurance is obviously one way of doing that. 

However I am not very knowledgeable on the whole insurance side of things and was looking some guidance. 

It just used to be ( as for a lot of people ) get insurance, take what they give me and pay for it. This does not cut it any more.

We have at the moment Life Insurance for myself and my wife for death, critical illness, surgery cover etc.., mainly taken out due to getting a mortgage a few years back. We also have Mortgage payment protection with EBS, for cover if we loss our jobs ( both working ), critical illness, disability. 

My wife also has VHI Health Insurance. I do not. 

I suppose my question is, is there duplication here? Is there a need for all of the above? Is there anywhere they can be combined? And also if we did have a claim for something like a critical illness would there be an issue that we are covered on 2 policies for it?

A lot of queries I know, but i am so naive when it comes to this that I have made a point of getting my head around this year and getting it sorted. 

Is there even somewhere you could call which could give free advice?

Any help appreciated.

Thanks
JB


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## Sumatra (21 Mar 2013)

Hi JB,

Try National Consumer Agency on 1890 432 432 or nca.ie

Also see http://www.nca.ie/nca/getting-financial-advice

Regards,  Sumatra


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## wbbs (21 Mar 2013)

Having more than one policy does not matter, if you have valid claims all will pay out, unlike for example house insurance where you cannot be insured twice, well you can pay it but they won't pay out.

They are different types of policies so while they duplicate benefits the amount paid out in benefits are different.  The one with your mortgage will pay out a lump sum if you die or are diagnosed with a specific serious illness.  The repayment protection will pay your repayments for up to 12 months if you are out of work through accident, illness or redundancy, this is the usual anyway.

As you can see while some of the risks covered are the same the amounts paid out and the term are different.  In an ideal world then one would have both of these types of policies, however when something has to give then you have to decide which is of more benefit to you.

You will have to keep life cover on your mortgage but you could get rid of the serious illness cover part of it if you want.  How secure are your jobs?  Is there sick pay for any length of time, this may help you decide whether the repayment protection is worth it or not.

Personally my health insurance will be the last thing I get rid of.


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## Gerry Canning (11 Apr 2013)

To JB81. I would be VERY afraid your EBS cover is a PAYMENT PROTECTION POLICY.If so it probably DOES NOT cover you both, it probably increases each year etc.People naiively believe insurances will pay out as in a layman,s understanding.. Check any PPI mis-sell website. ASk YOURSELF if Banks paid out could these exist ???Sorry if I worry you but BE VERY AFRAID.


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