Mppi

weymike

Hi All,

I have read the MPPI threads and I am a little confused.
Can I claim back the monies I have paid?
I have three MPPI running with three seperate companies. Two of them will pay out to cover the mortgage. One is for accident, sickness & unemployment.
Can I cancel these policies?

I can give you names etc if needed.

Thank you in advance.

Mike.

dunstonh

Can I claim back the monies I have paid?

On what grounds?

I have three MPPI running with three seperate companies. Two of them will pay out to cover the mortgage. One is for accident, sickness & unemployment.
Can I cancel these policies?

If you wish.

You need to give us your reasons for complaint if you wish us to give opinion. If you are paying them monthly though then that does eliminate the most common area of complaint with MPPI (single premium). That leaves you very few reasons for complaint left (MPPI has far fewer complaints than loan and credit card for well documented reasons).

gratefull

I have a MPPI taken out on a mortgage in 1988 the mortgage has been settled in full long before its term, however the MPPI is still running, and as such I may be able to claim these payments back. But as a life insurance alone I intend let it run its full course simply because i believe it to be a viable an excellent product.

you need to look at this closely to see if you could lose more than you could gain.

dunstonh

gratefull wrote: »

I have a MPPI taken out on a mortgage in 1988 the mortgage has been settled in full long before its term, however the MPPI is still running, and as such I may be able to claim these payments back. But as a life insurance alone I intend let it run its full course simply because i believe it to be a viable an excellent product.

you need to look at this closely to see if you could lose more than you could gain.

You start by talking about MPPI but then mention life assurance. MPPI is not life assurance and life assurance is not MPPI. They are two different things.

gratefull

dunstonh wrote: »

You start by talking about MPPI but then mention life assurance. MPPI is not life assurance and life assurance is not MPPI. They are two different things.

That clears that up then thank:o you

_Andy_

I love how people pay insurance, and think they can 'claim' back the payments just because they haven't claimed on the policy.
Not sure how they think the insurance business model would work if this was the case.

bwlmog

Hi hopefully someone can help,

Both my wife and I are civil servants and have been since 1996. In 2000 we bought our first home together. When applying for the mortgage we met a financial advisor from the bank concerned and we explained the rules concerning sick pay and redundancy within the civil service but were advised that t would still be in our interest to take out MPPI to cover illness and unemployment which on their advice we did.

We have had numerous reviews since with the in-branch financial advisor, linked to a house move, end of fixed rate etc and each time we made them aware of the circumstances of our employment and benefits available.

Following birth of our first child (in 2005) we cancelled the illness part to cut costs but kept he redundancy element going (@£45 a month).

I now understand from speaking to colleagues that due to the redundancy package offered in the civil service the banks would never pay the MPPI as any compensation would equate to a years salary (which is the same length as the MPPI period of cover). I have checked the policy and there a mention to payments in lieu of redundancy but it is vague to say the least. IS the advice that I have been given correct and if so, do I have grounds for miss-selling?

Sorry for the long ramble and thanks in advance.

dunstonh

We have had numerous reviews since with the in-branch financial advisor

Gluttons for punishment. What is it about seeing sales reps from tied sales forces offering expensive and often cut down or limited products that appeals to you?

I now understand from speaking to colleagues that due to the redundancy package offered in the civil service the banks would never pay the MPPI as any compensation would equate to a years salary (which is the same length as the MPPI period of cover).

Your colleagues are likely to be wrong. It is only payment in lieu of service that is considered as income. Redundancy payments are not. e.g. if the package is made up of 3 months payment in lieu of service and £30k, then the £30k is irrelevant to the MPPI. However, the 3 months payment in lieu of service is not as that is treated as being paid for 3 months. Unless 100% of the package is payment in lieu of service, the colleagues are not going to be right.

bwlmog

Thanks for the reply, at least I know. Wouldn't want to waste people's time with frivolous claims. Will prob cancel MPPI as stuck in 5 year fixed rate at 6.9% and need to make savings where ever possible.

weymike

_Andy_ wrote: »

I love how people pay insurance, and think they can 'claim' back the payments just because they haven't claimed on the policy.
Not sure how they think the insurance business model would work if this was the case.

Hello Andy,
I am not that good at 'getting my head around' financial stuff.
I was asking for help in this matter from people like yourself in more layman's terms.
I am none the wiser now!
So a MPPI is different than a PPI? (See original post)
Can I cancel the two MPPI's and get a cheaper one?
Can I just cancel the ASU one or have I been mis-sold it.
Thanks in advance, Mike.

dunstonh

So a MPPI is different than a PPI? (See original post)

It is in the same product class. A Ford Focus is a car. A BMW 328 is a car. A McLaren MP6 is a car. They are all different though.

Can I cancel the two MPPI's and get a cheaper one?

If you like. Remember that cost if not everything. Is it better to pay more for quality or pay less for something less likely to pay out?

Can I just cancel the ASU one or have I been mis-sold it.

You havent said why you think you have been mis-sold.