One for the insurance gurus here!
I currently have income protection to the maximum allowable (65% or thereabouts) of my annual net income (32k). As a self employed (sole trader) I have just taken out a PCP for a work vehicle (£875 pcm over 5 years) and have been looking into a way of covering this payment. I have been offered a suite of three policies (to replace my current income protection) that add up to my personal income requirements PLUS the vehicle payment (£875 & £1000 & £650pcm). I have been told these will payout these amounts in the event of a claim (for serious illness or incapacity). Life cover is separate.
These three separate policies are offered as “non verified income protection insurance policies”, which means that in the event of a claim they do not contact other insurers with a view to only paying their “share”of the payout. This seems to be a crafty workaround of the rules designed to prevent people from “over insuring” their income. The company offering these policies is FCA regulated and authorised, so i have to assume this legitimate, but should i be aware of any pitfalls apart from the usual “understand what IS and is NOT covered” questions.
Many thanks in advance.