life insurance, reclaim?

Robin44

Hi

I am after bit of advice about life insurance and I am hoping to get some clarification on the matter.

My father took a mortgage out some 20 years ago and was told at the time that he had to take out life insurance so he went with Zurich. Now that he has paid off his mortgage and not claimed any life insurance which has now been terminated I have been told by a few people that he can somehow claim the money that he has paid back now. I really don’t know how much truth there is to it and would someone to confirm if this is true or not?

If there is some truth to it can you please point me into the right direction ….

Thanks

dunstonh

My father took a mortgage out some 20 years ago and was told at the time that he had to take out life insurance so he went with Zurich.

Which seems quite normal as lenders used to insist on life assurance. So, nothing wrong there.

Now that he has paid off his mortgage and not claimed any life insurance which has now been terminated

Which is nice to hear as it means he is still alive.

I have been told by a few people that he can somehow claim the money that he has paid back now.

You cant.

I really don’t know how much truth there is to it and would someone to confirm if this is true or not?

none whatsoever.

If you dont claim on an insurance you dont get your money back. The whole point with insurance is that you pool your risk over many people and share that burden. 1 in 5 may die and that 1 will get a pay out but the pay is funded by the 5 people paying.

Think about it logically. Do you ask for your house insurance or car insurance to be repaid each year if you dont have a claim? Same applies to all other insurances.

Robin44

thought so but wanted clarification.

thanks again,

Stuart_1980

Would there ever be a case of re-claiming mis-sold life insurance? if so on what grounds?

dunstonh

Would there ever be a case of re-claiming mis-sold life insurance?

Yes. I have successfully done it for clients.

One case I had applied for a mortgage but was declined but the bank still set up the insurance (1993). They had an endowment mortgage with their other lender so it duplicated cover. The bank refunded premiums plus interest.

Another case was a single person with no dependents. Refunded premiums plus interest.

Single premiums would also be a case you could complain about (not on whole of life assurance but on level term/decreasing term).

However, having life assurance and getting to the end of the term and not claiming is not something you can complain about.