PPI on Income Protection Policy?

Flyhigh

I took out an Income Protection policy when I bought my house 7-8 years ago. I've just spotted that I'm also paying for Payment Protection Cover on the same policy. I only have vague memories of the conversation I had with the mortgage advisor but do remember her strongly recommending that I take something out (whether it was the PPI or the policy in general, I'm not sure). I can't specifically remember PPI being mentioned at all.

Is this likely to have been mis-sold to me in the same way as it has been for loans?

I'm sure this must have been covered already - I have searched the forum & the Reclaiming FAQs etc, but can't find anything specific. The other posts seem to be related to loans so I'm wondering if Income Protection insurance is in the same boat.

Thanks in advance for any info/advice

dunstonh

I can't specifically remember PPI being mentioned at all.

I wouldnt expect you to as benefits are normally considered not names that are used today. (7-8 years ago, the product was known more commonly as ASU - accident sickness and unemployment).

Is this likely to have been mis-sold to me in the same way as it has been for loans?

You have given no indication of mis-sale.

I'm wondering if Income Protection insurance is in the same boat.

I have never heard of income protection having PPI on it. Indeed, it wouldnt make sense as income protection pays out if you are ill. PPI would just duplicate it.

However it is not uncommon to have a dual plan where ASU covers the first 12 months and income protection kicks in after 12 months. That is very often the best and most cost effective way of doing income protection. However, that wouldnt be PPI on a PHI. That would be PPI in conjunction with a PHI.

Can you give us the provider name and product name and I will try and identify it as at the moment, what you suggest it is doesnt make any sense as you cant take out income protection on an income protection plan as that is what an income protection does by default.

I have searched the forum & the Reclaiming FAQs etc, but can't find anything specific. The other posts seem to be related to loans so I'm wondering if Income Protection insurance is in the same boat.

Adviser cases are very low on the mis-sale count. It is not seen as an adviser issue in general (just 0.2% of complaints on PPi at the FOS are adviser sales). Monthly premium mortgage insurance is generally common sense and something most people have.

Flyhigh

Many thanks for the reply. I've dug out & trawled through the paperwork....

The policy was taken out in 2006 with AXA but has since been taken over by Friends Life. There are 2 Income Protection Covers - one deferred by 26 weeks, the other by 52 weeks. Then there's the Payment Protection Cover.

On each of the Income Protection policy sheets there's a note stating "Please note that AXA require Payment Protection Cover to be taken out alongside Income Protection Cover." Within the Payment Protection Cover quotation it states "Amount of cover: The amount of your payments in respect of the life covers within this account"

.... Does this sound reasonable/normal to you? It's not much of a payment - only 85 pence per month, so either way, it's not the end of the world!

Thanks again

dunstonh

There are 2 Income Protection Covers - one deferred by 26 weeks, the other by 52 weeks.

That is common. It matches 6 months full pay, 6 months half.

On each of the Income Protection policy sheets there's a note stating "Please note that AXA require Payment Protection Cover to be taken out alongside Income Protection Cover." Within the Payment Protection Cover quotation it states "Amount of cover: The amount of your payments in respect of the life covers within this account"

That sounds like waiver of premium on the life assurance (if you have life assurance). Its not PPI.

Flyhigh

Aaah OK - I remember the main policy making sense to me at the time. I don't have life assurance - just the Income Protection. I got a reminder about it in the post today & with all the fuss over PPI lately I thought I'd check it out.

Many thanks for taking the time to respond - I'll put my paperwork away now (and in a better state than it was when I got it out!) :beer: