involuntary unemployment insurance

bigpanda_2

Hi

I've been going thought some paperwork with my parents and found that they have been paying for insurance which included involuntary unemployment insurance for years that they didn't realise.

My dad has had two times of unemployed within the last 10 years. one of 8 months and one of around 4 months.

Obviously they didn't realise at the time they had this otherwise they would have claimed.

The 4 month period of unemployment they phoned the bank where this policy is from as they dealt with their mortgage as well and explained they they were unable to pay due to unemployment. The bank said they would be able to change the mortgage to interest only to help them out. I believe they should have informed them at this point that they had this insurance that would have covered them and paid the mortgage for period or at least part of it.

Is there any point in trying to put a claim through now?

Any advise would be much appreciated!

Thanks in advance.

forgotmyname

Always worth asking.

Worse case is they say no.

LittleVoice

bigpanda wrote: »

Hi

I've been going thought some paperwork with my parents and found that they have been paying for insurance which included involuntary unemployment insurance for years that they didn't realise.

My dad has had two times of unemployed within the last 10 years. one of 8 months and one of around 4 months.

Obviously they didn't realise at the time they had this otherwise they would have claimed.

The 4 month period of unemployment they phoned the bank where this policy is from as they dealt with their mortgage as well and explained they they were unable to pay due to unemployment. The bank said they would be able to change the mortgage to interest only to help them out. I believe they should have informed them at this point that they had this insurance that would have covered them and paid the mortgage for period or at least part of it.

Is there any point in trying to put a claim through now?

Any advise would be much appreciated!

Thanks in advance.

Was the insurance taken out because it was a requirement of the mortgage?

If it was not, there is less reason to expect the mortgage arm of the bank to know that the policy exists having been taken out separately.

kingstreet

It is better to think of cover being taken out through the bank rather than with the bank.

Banks act as intermediaries, receiving commission from the insurer. When the bank has its own insurance company, there is still an arms-length relationship and the bank may not have a record of contracts customers have with the insurer.

opinions4u

On the basis he didn't know he had cover, you might be better off pursuing this as mis-selling at getting all the premiums reimbursed.

Just a thought.