Funeral cover is this the new PPI?

ltb_2

I have spent the day investigated my elderly, frail step fathers finances. I discovered he has taken out no less than 12 loans most we believe to have PPI attached. Most whilst he was retired! We went to the bank for assistance and the Manager - no less attended. He was helpful and give me a print out of all the loans Patrick had ever taken with then. I then inquired about the scottish widows schemes he was paying into. The Manager very proudly told me the stopped selling PPI years ago instead these policies cover Patricks' funeral costs! He has three such policies all sold by the same branch. I asked, 'do you think he will die 3 times'? The bank manager had no reply to this. We left armed with my PPI printout but I am now more angry about the funeral cover!!!!!!!!! Is this allowed. Did he have to take it out to get the loans. The oldest is nearly 5 years old with a matching premium! Which means he could be paying for his funeral 3 times over if he only lives another 10 years. That is of course per policy as he as 3 policies he will effectively be paying for his funeral 9 times!!!!!!!!!!:eek::eek: I think this is actually worse than the PPI he has paid! Will they get away with it though because its a 'life cover' policy?

dunstonh

Funeral cover is this the new PPI?

No.

We went to the bank for assistance and the Manager - no less attended.

Half the staff have manager in their title. Its unlikely the real manager would step in.

I then inquired about the scottish widows schemes he was paying into. The Manager very proudly told me the stopped selling PPI years ago instead these policies cover Patricks' funeral costs! He has three such policies all sold by the same branch. I asked, 'do you think he will die 3 times'?

You can have as many life policies as you like. Most people have multiple plans.

Is this allowed.

yes

Did he have to take it out to get the loans.

no

The oldest is nearly 5 years old with a matching premium! Which means he could be paying for his funeral 3 times over if he only lives another 10 years.

Scottish Widows dont have a funeral plan. Almost certainly it would be a term assurance that is held.

Will they get away with it though because its a 'life cover' policy?

Statistically, life assurance complaints are low and most are rejected. They are looked mainly at whether there is a financial need or not. That is fairly easy to work out as it only comes down to whether anyone will be worse off in the event of his death. If he is single/widowed and living alone then he doesnt need life assurance (although the choice to clear the debts to allow your inheritance to remain intact is a personal decision that is not right or wrong).

ltb_2

Hi, thank you very much for your quick response. If he did not have to take out the cover, why did he think he did? I admit he can get confused but isnt that upto the person selling the policy to point out? Also if it is the 3rd policy in so many years and they do know my parents in the bank, do you not think they would consider it unnecessary to sell them another!

Scottish Widows may not technically call it a funeral plan, but both the Manager and the lady at Scottish widows referred to it as one.

And as everything seems to come in 3's!!! Thirdly my concern is not linked to my inheritance? It is linked to the fact my mum has to pay for care and it is getting more and more costly. One fifth of your income going on unnecessary policies is very worrying for my mum. Parkinsons is not a degenerative disease and we will need to pay for his care for alot more years to come.

I know I said I was only going to make three points! But whilst on my box. Another bank mis sold them a Sams mortgage which has ment they lost half the value of their house so when then need to move to sheltered accommodation they couldn't avoid it. So the bank lent them more money! They needed a ground floor flat but couldn't avoid it so my mum has to struggle through 5 fire doors with a wheelchair, thankfully there is a lift! The 18k they lured Patrick with for half their house, now means they ended up in a tiny flat on the first floor and a covenant from the bank for 22k.

Know no doubt you will again consider my only concern is my inheritance and not the worry that my mum and stepfather should be living on the ground floor with easy assess for wheelchairs, but because of a very good sales man in the bank they are not!!!!:mad:

Thank you for listening

dunstonh

If he did not have to take out the cover, why did he think he did?

I don't know. Most people have life cover and for good reason. Not to leave a surviving partner/spouse in financial difficulties being the key one.

Also if it is the 3rd policy in so many years and they do know my parents in the bank, do you not think they would consider it unnecessary to sell them another!

You cannot amend a life policy normally. New policies are the normal way of doing it.

Scottish Widows may not technically call it a funeral plan, but both the Manager and the lady at Scottish widows referred to it as one.

Some people like things referred to in easy names. Level Term Assurance may not be understandable to some.

The bottom line is really whether it was needed or not. We are talking financial need. If he died whilst he has debts, then his joint assets and sole assets would be required to clear that debt. If your mum doesnt have the money to clear the debt then she could lose the joint assets which may cause a financial burden (or not as we dont know the financial situation)

magpiecottage

dunstonh wrote: »

Scottish Widows dont have a funeral plan. Almost certainly it would be a term assurance that is held.

If a term assurance was sold to cover eventual funeral costs, there could be a valid complaint if he survived the term.

dzug1

magpiecottage wrote: »

If a term assurance was sold to cover eventual funeral costs, there could be a valid complaint if he survived the term.

But it's more likely to be a whole of life policy - at least it should be. And if funeral costs go up - as they do - you might want a top up policy. Not every year though.

Certainly not the best way of going about things

Souds as though he is over easily persuaded though, and it's difficult to know what you can do about that

dzug1

ltb wrote: »

We went to the bank for assistance and the Manager - no less attended. He was helpful and give me a print out of all the loans Patrick had ever taken with then. I then inquired about the scottish widows schemes he was paying into. The Manager very proudly told me the stopped selling PPI years ago instead these policies cover Patricks' funeral costs! He has three such policies all sold by the same branch. I asked, 'do you think he will die 3 times'? The bank manager had no reply to this. We left armed with my PPI printout h

Unless your step father was with you and gave permission they really shouldn't have discussed this with you at all - data protection. This branch sound a right shower.