Q: Hi – we would like to take out insurance to cover my husband in the event of redundancy. I understand we can only cover 50% of his wages with the income protection insurance, can we in addition take out a mortgage protection policy and a loan protection policy at the same time and would they all pay out should he be made redundant? Many thanks
A: The income protection policy allows you to cover a percentage of your gross monthly income (pre-tax). The money goes to you to use as you wish.
The mortgage and loan policies work on the same principal as above. So if you were to have the income policy and were covering the maximum allowed you could not take out a mortgage or loan policy.