Life Insurance, Repayment Protection on Mortgage

muspi

Hi, hope someone can advise on points below:

I have a mortgage and did take out Life Insurance and Repayment Protection in 1999. I paid these 2 extras until autumn 2010 and then stopped as I was advised to do so due to my financial difficulties at the time. I had moved back from abroad and had no job and was trying negotiate help.
The Repayment Protection was of no use to me whatsoever as I had not been made redundant and was not sick. It would not pay out anything even though I was unemployed. I put this payment on hold as I couldn't afford it (approx £30.00 pm). I was told that if I wanted to reinstate this policy I would have to pay the backlog of installments in one go and then continue monthly installments as before. I haven't restarted yet.
At the same time I stopped my life insurance payments (same amount monthly) and was told the same thing.
My question is - what happens to the money I have already paid into both over the last 10 years - does it just go into the banking ether?

confused....
muspi

ACG

You had that cover in place during the time you paid the premiums. Now you have stopped paying the cover has ceased. You will not get any of it back.

Also what you have been told with regards to paying the back premiums to start the policy again is usually onlt correct for upto 3 months, anything over this and its a case of re-applying from scratch.

muspi

I guessed as much but it's very frustrating when you are in financial difficulty and feel quite stressed and there seems to be a brick wall in front of you when it comes to getting help from a bank. Regarding the mortgage repayment protection, at the time this was sold to me I should have questioned the small print as it has offered me no protection at all (regarding being unemployed and not able to meet my mortgage payments). A lesson learned.
My bank would not let me pay interest only as I have a managed loan. Help or advice is only offered when you actually default. Trying
to preempt default and find a solution before this happens is something they won't discuss. So default and more stress.
Solution - find 3 jobs (not easy), shop cheaply and negotiate monthly.

emmell

Can't you look into the possibility the PPI was mis-sold.
ML.

muspi

That's what i'm intending ! thanks

ACG

Unemplyoment cover basically means if you are made unemployed then it will pay out a monthly sum.

If you were made unemployed then it will pay out. If it wont pay out because you were inelligable then you are entitled to a refund. But this is usually only the case if you are working over 16 hours per week, you are employed and a few other things.
If the policy would never have paid out because you never met the criteria then it was miss sold. If you did meet the criteria and YOU left your job by choice then no it wont pay out.

You need to tell us a little more about the situation in the build up to your claim being rejected.

dunstonh

When you took out the insurance were you unemployed then? If so, how did you get the mortgage?

opinions4u

what happens to the money I have already paid into both over the last 10 years - does it just go into the banking ether

I've had buildings insurance for 21 years. My house has never burned down. I don't expect to get my premiums back.

I placed a bet on Chelsea to win the Premiership last season. The didn't. I don't expect to get my money back.

_Andy_

muspi wrote: »

Hi, hope someone can advise on points below:

I have a mortgage and did take out Life Insurance and Repayment Protection in 1999. I paid these 2 extras until autumn 2010 and then stopped as I was advised to do so due to my financial difficulties at the time. I had moved back from abroad and had no job and was trying negotiate help.
The Repayment Protection was of no use to me whatsoever as I had not been made redundant and was not sick. It would not pay out anything even though I was unemployed. I put this payment on hold as I couldn't afford it (approx £30.00 pm). I was told that if I wanted to reinstate this policy I would have to pay the backlog of installments in one go and then continue monthly installments as before. I haven't restarted yet.
At the same time I stopped my life insurance payments (same amount monthly) and was told the same thing.
My question is - what happens to the money I have already paid into both over the last 10 years - does it just go into the banking ether?

confused....
muspi

So let me get this straight - the business model you're suggesting insurers use is that if you don't claim, you get all the premiums back?
Genius. How would they pay out any claims?
Absolutely love it