Is life Insurance the same as PPI

ck67

My mother in law took out a loan 4 years ago which the bank (Natwest) would only give her if she took out life insurance as part of the loan.

Is this the same as PPI and can she claim back in the same way?

DrSqueeze

They're different, but they can both be missold.

PPI will keep the monthly repayments going if someone becomes ill or unemployed.

Life Insurance typically pays a lump sum if a person dies - or depending on the policy this can be payable if they're diagnosed with certain illnesses.

There are, of course, lots of different life insurances and options (some might provide regular payments as an alternative to a lump sum for example).

As a first step, your mother-in-law would need to look through the paperwork to see why they insisted upon it, whether she was given an option about which insurance company to use and whether it was properly explained. And how much she is covered for.

Once she's looked into that, she can consider whether it was missold and whether she still needs / wants it.

dunstonh

They're different, but they can both be missold.

Anything can be mis-sold in reality.

Is this the same as PPI and can she claim back in the same way?

unlike PPI, the life assurance with a bank would have been sold under an advice process. So, they should have a much greater audit trail.

As a first step, your mother-in-law would need to look through the paperwork to see why they insisted upon it, whether she was given an option about which insurance company to use and whether it was properly explained. And how much she is covered for.

Natwest did not offer an independent service and had no requirement to give alternative insurance companies.

I think the easiest thing here is to look at financial need. If there are no financial dependants then its a mis-sale. If there are financial dependants then its not

ck67

She was 58 at the time and her daughter was 35, she was told that she had to have it or they would not give her the loan. She had no mortgage on her house but needed it for some improvements

many thanks for the constructive replies