Personal Insurance

[Glad-Rags]

I have 2 seperate policies which pay out �40k and �70k to my spouse if I die. Will seperate insurance companies each pay out on the death of the same person?

[VillageVicar]

Typically, yes. You may not know, but in higher policies, often the insurer 'subs' the policy, meaning, they go to other companies to share the risk.

Are these policies 'term' policies? If so, you might find that you save more money increasing one and eliminating the other..

Best regards

[dzug]

Yes, for this sort of policy they will pay out. The aim of the policy is to pay out a defined amount when a certain event occurs. It is not aiming to pay you restitution for a loss.

Where two policies will not both pay out is where you insure against eg loss or theft. The aim of the policy then is to put you in the position you would have been had the loss not occurred - not to better your position. So in that type of situation either one will not pay out or they will share the loss.