Life Insurance

Lorraine66_2

We were told when we took out our Mortgage that we had to take the life insurance that the bank provided. We told them we already had life insurance. We were told we would not get the mortgate without it. Recently on a clear out, I found the paperwork and tried to call the company National Australia Life as I stopped paying it 2 yrs ago due to financial restraints. Could not get hold of National Australia phone just kept being engaged. Contacted Clydesdale Bank who sold the insurance and they told me that the company had been taken over twice since we took the insurance out. We were never informed of this, the bank also said that there is no surrender value on the policy, its only if you die while paying mortgage. They also said it was compulsory for this to be taken out with any mortgage.
Could anyone tell me if we could claim for being mis sold the policy as we did not want it anyway. Why pay something for duration of mortgage at £28 month and get nothing unless you die, seems a waste of money especially if people are struggling with mortgage.
We had another mortgage and recently claimed the PPI on that (Life insurance) and were refunded without any ifs or buts.
Any advice would be welcome.:)

di3004

Lorraine66 wrote: »

We were told when we took out our Mortgage that we had to take the life insurance that the bank provided. We told them we already had life insurance. We were told we would not get the mortgate without it. Recently on a clear out, I found the paperwork and tried to call the company National Australia Life as I stopped paying it 2 yrs ago due to financial restraints. Could not get hold of National Australia phone just kept being engaged. Contacted Clydesdale Bank who sold the insurance and they told me that the company had been taken over twice since we took the insurance out. We were never informed of this, the bank also said that there is no surrender value on the policy, its only if you die while paying mortgage. They also said it was compulsory for this to be taken out with any mortgage.
Could anyone tell me if we could claim for being mis sold the policy as we did not want it anyway. Why pay something for duration of mortgage at £28 month and get nothing unless you die, seems a waste of money especially if people are struggling with mortgage.
We had another mortgage and recently claimed the PPI on that (Life insurance) and were refunded without any ifs or buts.
Any advice would be welcome.:)

Hi and welcome

Will leave this one for Dunstonh, who I'm sure will be along soon to take a look, good luck.;)

dunstonh

We were told when we took out our Mortgage that we had to take the life insurance that the bank provided. We told them we already had life insurance. We were told we would not get the mortgate without it.

Quite probably you were. Banks are known for saying all sorts of rubbish. However, verbal claims cannot be substantiated. i.e. you could claim you were told all sorts of things but unless you have any evidence or its in conjunction with another complaint issue, then you wont get a complaint upheld on the basis of what you say you were told.

Could anyone tell me if we could claim for being mis sold the policy as we did not want it anyway.

Life assurance is simple and comes down to a yes or no question.

Did you or your partner/spouse have any financial need for it when you bought it?

If yes then its not a mis-sale. If no then it is.

Why pay something for duration of mortgage at £28 month and get nothing unless you die, seems a waste of money especially if people are struggling with mortgage.

If you are struggling now then just think how it will be if one of you dies.

We had another mortgage and recently claimed the PPI on that (Life insurance) and were refunded without any ifs or buts.

You were very lucky. Most MPPIs are not refunded unless they are single premium or you were not eligible for cover at point of sale or in the rare cases where there was no documentation on file on an advice case. Life cover is a different beast though as most of those are sold under an advice process. MPPI usually wasnt.

jojobaker

di3004 wrote: »

Hi and welcome

Will leave this one for Dunstonh, who I'm sure will be along soon to take a look, good luck.;)

Hi.
I am new to this site and can't seem to find how to place comment on the forum.
It appears that I have 3 life insurances, does anyone know why this would be? Surely I only need one! Have being paying into them for years. Can anyone help?

Kindest Regards
Joanne Baker

dunstonh

It appears that I have 3 life insurances, does anyone know why this would be?

Because you have taken three life policies out.

Surely I only need one!

You can have as many as you like. I have four.

For the average family, two is the typical minimum (one for mortgage, one for family protection). However, if the husband/wife earn different amounts, the financial needs may not be even (usually are not) and you can then end up with needing 4 policies.

Over the years people can top up their life assurance. As you cannot amend existing plans, you get another one for the difference.

If you are unsure if you currently need the level of life assurance you have, then ask your IFA for a review. It may be the consolidation or an adjustment is possible.

Consumerist

jojobaker wrote: »

I am new to this site and can't seem to find how to place comment on the forum.

Hi Joanne,

Welcome to MSE forum.

Well, you just posted a comment but if you want to start a new thread with a question or discussion then go to the forum you want to post in and hit the "New Thread" button at the top or bottom of the list of posts.