problem with life insurance

ladysparklexx

We hold life and critical illness insurance with scottish provident linked to our mortgage, or until today I thought we did.

Due to starting a dmp plan, I contacted them today to change my direct debit details, she said that she was unable to do this as the address on file did not match my address that I told her. Now Im really confused, I have only ever lived at three address's, my parents, my flat and now my house.

We were living in our flat when we bought our house, all through a financial advisor. our mortgage is with halifax and our life insurance with scottish provident. This was taken out linked to our mortgage so that it would be settled if anything happened.

Non of these three address's are the address that they have on file, so would not tell us the address that she does have or even what city it was in. She also said that it is not linked to out mortgage and that it is invalid as such for what we purchased it as.

I asked how we went about sorting it out, and I cannot cancel or change anything without confirming the address that they have on file. Im so cross with them I do not understand how they could have any other address and for the past 8.5 years have clearly been sending my letters goodness knows where.

What do I do next?

dunstonh

She also said that it is not linked to out mortgage and that it is invalid as such for what we purchased it as.

Life assurance is not linked to a mortgage. Even when the purpose of the life assurance is to repay the mortgage. So, it would never invalidate it.

As the insurance company is Scot Prov and the mortgage is Halifax, this would indicate you bought the mortgage and insurance via a broker/adviser. The adviser has authorisation to discuss the policy with the provider. So, you could go back to them and ask what is going on.

Given the misinformation you have been given on the policy, it is possible that you have got a newbie or a waster at the insurance company and the information given was duff. So, trying again to get someone else may help as well.

ACG

Just to expand on Dunstons comments...

Your insurance sounds like its on a decreasing term over the same period as your mortgage. What this means is that in the event of a claim it will pay out an amount that should closely resemble the amount of yoru outstanding mortgage at that time. Scotish Provident will pay the sum of money to you. You can then use that money for whatever you like (your mortgage, a holiday, invest it, a big night out...or 2...whatever you want).

kingstreet

Write to Scottish Provident confirming your full details, policy number, your full names and dates of birth.

Confirm to them this is your only address and it is to be used for all future correspondence.

Enclose copies of council tax bill, utility bill or driving licence to link your names and address officially.

FWIW I've had my self assurance mortgage plan for eight years and I haven't had a single letter from them in all that time. Chances are you've missed no correspondence either. If you are worried you might have, ask them for any copy correspondence between the inception date and now.

As dunston said, it may have been taken out for mortgage purposes, but there is no direct link between the mortgage the policy.