Have we been Mis-sold Critical Life Cover?

StringsOfLife

Hi,
When my wife and I took out our mortgage agreement in 2003 we were told that we could not get the mortgage without both of us taking out critical life insurance cover with the bank.
We did say at the time to our mortgage bank advisor; I would be leaving my job to take a 2-year course to lead on to becoming self-employed and that the mortgage payments would be coming out of my wife's bank account (who is a teacher). The mortgage bank advisor still claimed we both had to take out the critical life insurance cover (which we did).

We have just recently entered into another 2-year fixed mortgage rate with our bank, and when I mentioned our critical insurance life cover and how my wife was already covered through being a teacher and I was self-employed, the bank advisor stated that our critical life cover could be reviewed and cancelled at any time.

Obviously this statement now poses the question, were we mis-sold it in the first place?

Thanks in advance for any help...

dunstonh

We have just recently entered into another 2-year fixed mortgage rate with our bank, and when I mentioned our critical insurance life cover and how my wife was already covered through being a teacher and I was self-employed, the bank advisor stated that our critical life cover could be reviewed and cancelled at any time.

The teachers pension/employment benefits scheme does not cover critical illness. So, why do you think your wife is covered? Self employment is not an issue for CI either.

Obviously this statement now poses the question, were we mis-sold it in the first place?

You took on a major debt and it was recommended that you have life assurance and CI. They may have been too forceful in pushing it or perhaps telling a porkie is saying you had to have it (although some as late as 2003 did still require life assurance). However, you cant prove what was said nearly 10 years ago. Only the documentation will be of any use now.

So, looking at it on a financial need basis, you clearly needed it. (you were borrowing money. So, you didnt have the savings). You are financially dependent on each other as most couples are. It has no overlap with employment benefits. So, it is suitable. Plus, you were both eligible as it was underwritten at point of sale.

So, unless you are immortal (for the life assurance part) or your have evidence to show you will never suffer a critical illness then you have no grounds for complaint on that part.

That said, why you are seeing bank sales reps? See real advisers in future. Its cheaper and the products are usually better quality.