Mortgage Life Insurance Error

JillyRozz

Hi,
can anyone help?
I was rung last night by my lender telling me that my life insurance on our mortgage had been miscalculated when we re-mortgaged a few years ago. So, if I had passed on during that time my family would not have benefited at all.
Because all the monthly payments have had no value can I reclaim those monies back....can I demand this money back?
I have been asked to go into branch next week to work out what it should have been, but I would like to go armed with information.

Thanks everyone!
Jill

kingstreet

JillyRozz wrote: »

I was rung last night by my lender telling me that my life insurance on our mortgage had been miscalculated when we re-mortgaged a few years ago.

Can you tell us how this "miscalculation" occurred and its nature?

So, if I had passed on during that time my family would not have benefited at all.

Frankly, the Financial Ombudsman Service (FOS) may not accept that, if the insurer made an error and premiums were being paid as agreed.

Because all the monthly payments have had no value can I reclaim those monies back....can I demand this money back?

Possibly. You need to know the answers to the above before we can establish what has happened and where the problem has arisen.

I have been asked to go into branch next week to work out what it should have been, but I would like to go armed with information.

I suggest you do this, then report back to this thread so we can help you further. In general, you have a right to complain about how you are treated and the provider has upto 8 weeks to resolve the issue. If that does not happen, you have the right to escalate the issue to the FOS. Mere mention of the FOS is likely to see the provider put in a little extra effort to resolve the matter.

dunstonh

was rung last night by my lender telling me that my life insurance on our mortgage had been miscalculated when we re-mortgaged a few years ago. So, if I had passed on during that time my family would not have benefited at all.

Not necessarily correct. If the fault was with the insurer, they would be expected to pay out. If the fault was with the lender, they would cover the difference. If the fault was with you then you would lose out.

Mistakes happen but it does not absolve the companies of their responsibility. Especially once premiums have been paid. So, to assume you would not be covered is wrong. However, without knowing the context of the error and what they are doing to put it right, it is difficult to comment.

betmunch

Sounds to me like a branch advisor is short of appointments and is desperate to get someone in for their figures/churn the policy.

dunstonh

betmunch wrote: »

Sounds to me like a branch advisor is short of appointments and is desperate to get someone in for their figures/churn the policy.

its does seem strange that an "error" is being handled at the branch and not centrally via the insurer. A churn attempt does seem like a possible explanation.

betmunch

The scare story about not getting any benefit at all was a big red flag for me.

Oh no, no benefit I better get in and sort this out - Appointment, check.

Good news Mrs client, you would have got £xx,xxx but you really need £xx,xxx + £100, I'll write you up a new policy right away the cost wont be any different really - Churn, check.