Is it ok to have 2 mortgage protection policies?

A

aristotle

Registered User
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897
Hi,

Is it ok\legal to have two mortgage protection polices related to the same mortgage\property?

They would be from two different insurers, I have ended up with one covering just my life (which was a very cheap premium so it is good value) and another one which is joint life.

I am not sure if this allowed? Would both pay out if I RIP'd for example ?

Thanks
 
Are they not just life policies?

The benefit of one of which is assigned to your lender?

Don't see why they would both be assigned to your lender.

Both would pay out so long as you are paying your premia.

mf
 
Correct, one is assigned to the lender and the joint one is assigned to me\wife. They are just life policies but called "mortgage protection policies", essentially the same thing as I understand it.

Thanks.
 
Mortgage protection policies are designed to pay off the balance outstanding if the person whose life is assured dies.

So the amount diminishes each year as you pay off the mortgage. Having two will give a sum over obviously if they are needed in case of death
The joint life could be on one life or both - presumably it's first life
 
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