Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • simpywimpy
    • By simpywimpy 3rd Sep 17, 7:48 PM
    • 1,956Posts
    • 1,336Thanks
    simpywimpy
    Mortgage insurance cover
    • #1
    • 3rd Sep 17, 7:48 PM
    Mortgage insurance cover 3rd Sep 17 at 7:48 PM
    A family member had a policy to cover mortgage payments for the usual reasons including sickness, unemployment etc which they have held since at least 2011 if not before.

    February this year she phoned them to say she could afford the payments due to ill health (this is their words according to their records) so they cancelled the policy.

    Fast forward to August and the lady concerned has passed away leaving a 20k mortgage debt.

    I haven't spoken to the mortgage company as yet but my point is, surely we have a case because she left her job due to ill health towards the end of 2016 and when she called to tell them she couldn't afford it due to illness, they should have told her she was eligible to claim on the policy, not just cancel it for her.
Page 1
    • Quentin
    • By Quentin 3rd Sep 17, 7:53 PM
    • 32,809 Posts
    • 16,840 Thanks
    Quentin
    • #2
    • 3rd Sep 17, 7:53 PM
    • #2
    • 3rd Sep 17, 7:53 PM
    Worth a try - though not really up to the insurer to guess why the policyholder can't afford to pay the premiums (if that's what you meant), or why the policyholder didn't phone the claims dept.
    • simpywimpy
    • By simpywimpy 3rd Sep 17, 7:56 PM
    • 1,956 Posts
    • 1,336 Thanks
    simpywimpy
    • #3
    • 3rd Sep 17, 7:56 PM
    • #3
    • 3rd Sep 17, 7:56 PM
    I don't think she realised she was covered for not being able to work due to ill health but I would have thought it was their job to ask further questions when it was clear she should have been claiming already
    • Quentin
    • By Quentin 3rd Sep 17, 8:10 PM
    • 32,809 Posts
    • 16,840 Thanks
    Quentin
    • #4
    • 3rd Sep 17, 8:10 PM
    • #4
    • 3rd Sep 17, 8:10 PM
    It would depend on to whom she spoke about being unable to afford to continue paying the premiums.


    If she just contacted a cs agent and said she couldn't afford to pay they wouldn't probe further - (none of their business why)


    But as advised no harm trying a complaint that the call was mishandled
    • dunstonh
    • By dunstonh 3rd Sep 17, 8:14 PM
    • 89,531 Posts
    • 54,982 Thanks
    dunstonh
    • #5
    • 3rd Sep 17, 8:14 PM
    • #5
    • 3rd Sep 17, 8:14 PM
    A family member had a policy to cover mortgage payments for the usual reasons including sickness, unemployment etc
    ASU covers accident, sickness and unemployment. It does not cover death. it may be an idea to check what the policy actually covers as there is no such thing as "usual reasons".

    I haven't spoken to the mortgage company as yet but my point is, surely we have a case because she left her job due to ill health towards the end of 2016 and when she called to tell them she couldn't afford it due to illness, they should have told her she was eligible to claim on the policy, not just cancel it for her.
    A claim on the ASU is possible retrospectively. Obviously, it would only pay out a small amount if successful given the few number of months after the qualifying period.

    they should have told her she was eligible to claim on the policy
    How would they know if she was eligible? You are talking about low skilled, usually contract workers sitting in a call centre. Yes, it may have been a good idea to suggest she puts a claim in first. However, they wouldnt know if she was eligible or not.

    Plus, if its not ASU and its Life assurance (the most common type of insurance taken with mortgages) then she would not have been eligible.
    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.
    • simpywimpy
    • By simpywimpy 8th Sep 17, 6:55 PM
    • 1,956 Posts
    • 1,336 Thanks
    simpywimpy
    • #6
    • 8th Sep 17, 6:55 PM
    • #6
    • 8th Sep 17, 6:55 PM
    The mortgage company themselves gave me a reference number for life cover but its not with them and they have no record of the company she was with. There is no direct debit either for anything other than car and house insurance that I can see.

    The policy for the Halifax mortgage cover all I have is the reference number not the policy itself.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,046Posts Today

6,901Users online

Martin's Twitter
  • Today's twitter poll: How many languages do you speak (inc Eng) with reasonable fluency (eg can have decent phone chat solely in that lang)

  • RT @iiSteveJonesii: @MartinSLewis After watching you talk this morning about me burning £300 I got on a comparison site tonight & sure enou?

  • In or near York? This Wed the @itvmlshow Roadshow" will be at the York Food & Drink Festival - do come and say hi; St Sampsons Square 11-4.

  • Follow Martin