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  • FIRST POST
    • brijus
    • By brijus 26th Feb 17, 12:10 PM
    • 4Posts
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    brijus
    Mortgage Protection, Life & Critical Illness Policies
    • #1
    • 26th Feb 17, 12:10 PM
    Mortgage Protection, Life & Critical Illness Policies 26th Feb 17 at 12:10 PM
    Hi All

    I wonder if I can have some advise from the forum today I currently have several policies for myself and my wife covering mortgage protection that decreases with the mortgage year on year. The next policy is critical illness policies for us both. I believe these was sold to me at the time when changing my mortgage every couple of years with my mortgage advisor back in 2002. They are currently still running with a few remaining years to run on them.
    Looking back at the time I am under the impression I might have been miss sold these items by the mortgage advisor. It was only when having a big clear out of my office I found these documents and they was associated to my last property address I contacted the insurance company to ask about these policies and the immediately asked for my new address to send out all the documents with my new address on would I have a case for PPI and if so who would I go to
Page 1
    • dunstonh
    • By dunstonh 26th Feb 17, 12:49 PM
    • 89,534 Posts
    • 54,984 Thanks
    dunstonh
    • #2
    • 26th Feb 17, 12:49 PM
    • #2
    • 26th Feb 17, 12:49 PM
    would I have a case for PPI and if so who would I go to
    1 - You haven't given any reasons for complaint in your post.
    2 - You haven't said if you have MPPI or not. The policies you list are not PPI.

    Looking back at the time I am under the impression I might have been miss sold these items by the mortgage advisor.
    How?
    Most people take out life assurance to cover their mortgage and families. Critical illness cover is frequently included. Statistically, you are more likely to claim on a CIC policy than life assurance too.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • ACG
    • By ACG 26th Feb 17, 5:00 PM
    • 15,406 Posts
    • 7,790 Thanks
    ACG
    • #3
    • 26th Feb 17, 5:00 PM
    • #3
    • 26th Feb 17, 5:00 PM
    Life and critical illness is nothing like PPI.

    You have a mortgage, you have a financial need for the critical illness, you have a partner, so yu have a financial need for life insurance.

    It makes sense to review your protection policies and at the time of remortgaging is as good a time as any.

    So you have a need and you knew about it as you have had policies previously which this one replaced.

    Where is the miss sale? If you ever had to claim, you will be very glad you have it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • originator
    • By originator 27th Feb 17, 11:32 AM
    • 268 Posts
    • 364 Thanks
    originator
    • #4
    • 27th Feb 17, 11:32 AM
    • #4
    • 27th Feb 17, 11:32 AM
    I was very glad I had mine.Diagnosed with cancer in 2009 and they paid out sweet as a nut.Don't give up your critical illness cover,money was one less thing to worry about at a frightening time.
    mortgage free 3/10/12
    • ThinkingOutLoud
    • By ThinkingOutLoud 28th Feb 17, 6:02 PM
    • 1,396 Posts
    • 1,301 Thanks
    ThinkingOutLoud
    • #5
    • 28th Feb 17, 6:02 PM
    • #5
    • 28th Feb 17, 6:02 PM
    Just because you have not been able to claim does not mean you have been missold.

    As noted you should view it that you have enjoyed peace of mind that if something had happened - you had some protection.

    Keep protected...
    I am just thinking out loud - nothing I say should be relied upon!
    I do however reserve the right to be correct by accident.
    • brijus
    • By brijus 1st Mar 17, 9:50 PM
    • 4 Posts
    • 0 Thanks
    brijus
    • #6
    • 1st Mar 17, 9:50 PM
    • #6
    • 1st Mar 17, 9:50 PM
    Thanks I am so confused at the moment with companies explain PPI being missold against mortgages.
    I thought it was worth a shout out to the forum think I have my answer
    • brijus
    • By brijus 1st Mar 17, 9:55 PM
    • 4 Posts
    • 0 Thanks
    brijus
    • #7
    • 1st Mar 17, 9:55 PM
    • #7
    • 1st Mar 17, 9:55 PM
    Thanks for the response every couple of years I change my mortgage as I used to take out short mortgages and hunt round for the best deals shaving years of my mortgages and reducing my repayment I vaguely remember one year on changing my mortgage the advisor I need to take out these policy's cant remember if this was a condition of the mortgage.

    Over the years he never asked me to take these out and I changed my mortgages 4 to 5 times at least.
    I didn't even know I had these documents
    Anyway I think you have answered my question
    • dunstonh
    • By dunstonh 2nd Mar 17, 1:34 AM
    • 89,534 Posts
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    dunstonh
    • #8
    • 2nd Mar 17, 1:34 AM
    • #8
    • 2nd Mar 17, 1:34 AM
    Thanks I am so confused at the moment with companies explain PPI being missold against mortgages.
    MPPI is different to most forms of PPI. Indeed, it is one of two types of PPI that is still retailed today. MPPI sees most complaints rejected. One of only two types of PP where that is the case.

    However, neither of the policies you mention are types of PPI.

    Also, cold callers tend to be talking rubbish most of the time. Someone posted in the pensions section of this board earlier today that they had a cold call telling them that by contracting out of SERPS their pension was mis-sold. However, in reality, only 1.5% of contracted out sales were potential mis-sales and the FOS only uphold 5% of complaints. What made it worse for that particular person was the type of pension they had cannot be missold and there was no choice to contract out. He was left worrying about a cold call about something that didnt apply to him. You seem to be similar in your worry.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • chele80
    • By chele80 10th Jun 17, 5:13 PM
    • 1 Posts
    • 0 Thanks
    chele80
    • #9
    • 10th Jun 17, 5:13 PM
    • #9
    • 10th Jun 17, 5:13 PM
    Hello
    i came across this thread whilst looking for some information and thought perhaps I could ask my question on here.
    When I was 25 (almost 12 years ago) I took out a mortgage using a Financial Advisor. When processing the mortgage he advised me that I "must" take out a Term Assurance policy with but he told me it had to be a particular one with a specific company and so in order to take to the mortgage that is what I did. its was a pretty high premium and I've paid it all these years. it was only recently while speaking with a friend that she questioned why took out that particular one and never changed it. Its simply because the advisor told me it had to be that particular one or I couldn't have the mortgage. I cancelled it today and took out a new policy.
    Does this sound right though or was the condition of being told i had to have that specific one or I could have the mortgage correct? I don't feel like this was right and its 12 years later now obviously I'd appreciate some answers.
    Thank you so much
    Michelle
    • ACG
    • By ACG 10th Jun 17, 6:15 PM
    • 15,406 Posts
    • 7,790 Thanks
    ACG
    Have a look at your Mortgage offer, it should list any conditions on there.
    In the past some Mortgage lenders did insist on a life policy, I am not sure if they specified a particular proivder or not as that was before my time as an advisor.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • dunstonh
    • By dunstonh 10th Jun 17, 7:47 PM
    • 89,534 Posts
    • 54,984 Thanks
    dunstonh
    When processing the mortgage he advised me that I "must" take out a Term Assurance policy with but he told me it had to be a particular one with a specific company and so in order to take to the mortgage that is what I did
    That would likely be because he was a tied agent of that insurer.

    Does this sound right though or was the condition of being told i had to have that specific one or I could have the mortgage correct
    There were not many mortgages 12 years ago that had life assurance as a condition. However, many brokers require the purchase of an insurance policy through them to allow them to provide free mortgage advice. That model is allowed as long as the insurance is appropriate. As most people take out life assurance for their mortgage, it is quite normal to have a policy.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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