Insurance Duplicated Insurance Wastes Money

Insurance Duplicated Insurance Wastes Money



Insurance .​
Duplicated Insurance Wastes Money.
Have you​ ever worked out how much you​ spend on​ insurance? Try totting up your premiums – we suspect you'll be surprised! You'll be even more surprised to​ discover that there's a​ probability that you've also duplicated some of​ the​ cover you're paying for .​
Cut the​ duplication out and you're certain to​ save money.
Lots of​ people have insurance cover for legal expenses,​ loss of​ income,​ theft,​ even death,​ without even realising it .​
This can arise because many of​ us don't fully understand what's covered by the​ policies we have,​ especially if​ the​ policies had been arranged for us by financial advisers and brokers.
In a​ recent survey,​ the​ Financial Services Authority (FSA) discovered that optional extras such as​ breakdown recovery and legal expense cover,​ were frequently added to​ car insurance without checking whether the​ policyholder was already covered .​
It's also not uncommon to​ find that people with Permanent Medical Insurance have duplicated their cover via payment protection policies taken out specifically to​ cover their monthly payments on​ mortgages,​ loans and credit cards .​
The point is​ that if​ they claim on​ their Permanent Medical Insurance,​ their payout will be reduced because part of​ their claim is​ also insured through their payment protection policies – so their payment protection insurance is​ really a​ waste of​ money.
The Financial Ombudsman has confirmed this saying,​ People often contact us when they find themselves over-insured .​
They often do not realise until they make a​ claim that they have been paying for a​ policy that provides very little,​ if​ any,​ benefit.
There's also ample of​ evidence that some of​ us simply don't understand what we're actually insured for! For example,​ take the​ case of​ Amanda Lariviere from West Yorkshire .​
Amanda,​ aged 42 and mother of​ two,​ is​ recovering from ovarian cancer and had an​ allergic reaction to​ chemotherapy which kept her off work .​
Out of​ the​ blue she received an​ unwelcome tax bill so she decided to​ visit her building society to​ find out if​ she could raise some cash by re-mortgaging .​
The adviser at​ the​ Society wisely asked her to​ bring with her,​ her life insurance policies so that they could be used to​ support her re-mortgage application .​
So imagine Amanda's surprise and delight when the​ adviser explained that her policies with Norwich Union and Scottish Provident,​ which had been costing her £80 per month,​ were not life insurance policies at​ all – they were actually critical illness policies with a​ combined insured value of​ £100,​000 .​
She was able to​ claim on​ these policies and the​ £100,​000 she received was sufficient to​ pay off most of​ her mortgage and her tax bill!
Here's some typical insurance policies to​ check out.
Critical Illness Insurance
Critical Illness insurance is​ often sold as​ an​ optional extra within a​ life insurance policy .​
In fact that's usually the​ cheapest way to​ buy it .​
However,​ some enlightened employers already provide critical illness insurance as​ part of​ their employment package .​
Ask your employer if​ you​ are one of​ the​ lucky ones!
Life Insurance
Some employers also provide life insurance cover within their pension schemes .​
It's called death-in-service benefit and typically pays out a​ tax-free lump sum worth 3 to​ 4 times the​ annual salary if​ the​ employee were to​ die whilst employed by the​ company.
Permanent Medical Insurance and Payment Protection Insurance
Permanent Medical Insurance (PMI) is​ also known by some people as​ Income Protection Insurance .​
PMI pays out the​ insured monthly sum if​ the​ policyholder is​ off work due to​ illness due to​ one of​ a​ wide range of​ specified illnesses - and some policies will even pay out during redundancy .​
PMI policies pay out indefinitely or​ at​ least until the​ policy comes to​ the​ end of​ its insured term.
Few appreciate is​ that PMI actually eliminates the​ need for Payment Protection insurance – the​ sort of​ insurance frequently sold alongside loans,​ credit cards and mortgages to​ maintain monthly payments if​ you​ are off sick,​ have an​ accident or​ are made redundant .​
Indeed,​ you​ can't make a​ claim against more than one policy for the​ same event – only one policy will agree to​ pay out! (All the​ others will reduce their payouts to​ the​ value of​ the​ money you​ are receiving from your other policies)
Mobile Phone Insurance Normally mobile phone policies have a​ hefty excess – rarely less than £50 .​
You could be better saving the​ insurance and changing to​ a​ pay-as-you-go plan.
Legal Expense Insurance
Insurance for legal expenses relating to​ disputes concerning your home will usually be included free of​ charge within your home and contents insurance policy .​
Most car insurance policies provide legal expense cover as​ an​ optional extra – others even include it​ as​ standard .​
Some trade unions and professional associations sometimes include access to​ legal advice as​ part of​ their service to​ their members .​
Check these out before you​ pay for more cover!
Insurance for ID Theft According to​ Which,​ the​ consumer magazine,​ you​ are only legally responsible for the​ first £50 if​ your identity is​ stolen .​
is​ it​ worth insuring for a​ £50 risk? Incidentally,​ my bank has just given me this insurance for free!
Automatic cover for credit card purchases Many credit cards automatically insure your purchases for a​ set period of​ time after you've shopped .​
Barclaycard is​ a​ good example .​
If you​ used Barclaycard to​ buy something valued between £50 and £2,​000,​ you're insured against theft and accidental damage for the​ next 60 days.




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