critical care

edited 24 November 2011 at 10:12AM in Reclaiming Mortgage Fees, Council Tax, etc
2 replies 959 views
missyb62missyb62 Forumite
1 Post


@1994 in order to receive a mortgage, I was told that I had to take out whole life and critical care cover and i am still paying out every month even though the mortgage was paid up in 2000. I then took out a second mortgage and as this cover was for @60000 I didnt need to take out any further cover. The second mortgage was paid in full in 2008. Dilema, is this a'ppi', should i stop paying, can i reclaim the money paid out until now.? I still have the paperwork. Confused, please help. Thanks


  • dunstonhdunstonh Forumite
    107.5K Posts
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    Dilema, is this a'ppi'

    No its not.
    can i reclaim the money paid out until now.?

    Do you have grounds for complaint?

    Whilst you should not be told that you have to have insurance when you do not, it is very difficult for you to prove and your word is not good enough. So, in your paperwork do you have anything that supports your accusation? Very few complaints get upheld on this basis as it would open the floodgates to anyone who has not had a claim on their insurance to then complain near the end of the term to say that they were forced to have it and should be refunded. If you have evidence though, then you have a valid complaint (unless it was actually a requirement of the loan - which is allowed).
  • AnniseleAnnisele Forumite
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    I'm assuming this is a life and critical illness cover (CIC) policy? If so, then it is not a PPI policy and the problems that have affected PPI sales have absolutely nothing to do with it.

    Life and CIC policies generally aren't linked to mortgages. They might be sold at the same time, but there's no direct link. So, if you'd died or suffered one of the insurer's list of critical illnesses, the insurer would have paid out regardless of whether you'd still had a mortgage.

    We won't be able to tell you whether or not you should stop paying - that would be financial advice, and the board rules don't allow us to give advice (and I'm not authorised to do so even if the board did allow it).

    Some of the things you might want to think about are:
    • Do you actually need the cover? If you're single with no dependants you might not need the life cover (but then it doesn't generally cost that much to add life to CIC).
    • Do you have enough cover? I tend to prefer policies that pay a monthly benefit if you're unable to work, rather than CIC which pays a lump sum if you have one of a number of illnesses. With CIC you can be too ill to work and unable to claim, or perfectly able to work throughout and yet still have a valid claim.
    • If you do need the cover, can you get it cheaper? If you bought it from a bank, and if your health hasn't changed since you did, you probably can get it cheaper now.
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