Income Protection Insurance

justubean

Hi
Can anybody help. A few years ago when remortgaging, I was informed by a Financial Adviser that the Income Protection Insurance I had in place on the previous loan was not required as I had a more than generous scheme in place from my employer. I cancelled this but I am now thinking of of making a claim against the bank who sold me this insurance as they were told of the sick pay that I received from the company I worked for before we took out the mortgage.
Can I use a PPI claim form or is there another avenue I should take.

Thanks. Stu.

dunstonh

Can you confirm whether the income protection you had before was for a loan or a mortgage?

It is a key bit of information as work benefits are generally not accepted as being a mis-sale reason for mortgage protection given the long term nature of the mortgage and the severity of the consequences if the mortgage is not paid. The FOS have been rejecting complaints using that reason on mortgage insurance.

However, on loan and credit card, that reason is much stronger given the short term nature and low consequences of not paying. Most complaints on those using that reason succeed.

Finally, can you verify whether this was income protection of payment protection. The former is not PPI and would be longer term and very hard to show a mis-sale.

justubean

Hi, it was a policy, well two actually to pay an income should it be required for sickness/redundancy etc. My argument is, it was sold to me although it was disclosed at the arrangement of the mortgage what was in place at my work in the event of me being sick etc. The financial adviser who arranged my remortgage informed me that it was totally an unnecessary policy to have considering my pay arrangements at work.

dunstonh

Hi, it was a policy, well two actually to pay an income should it be required for sickness/redundancy etc.

A split of two is usually the best way to do it.

My argument is, it was sold to me although it was disclosed at the arrangement of the mortgage what was in place at my work in the event of me being sick etc.

What you have at work is largely irrelevant with mortgage protection. As said, the FOS have been rejecting complaints on that basis.

The financial adviser who arranged my remortgage informed me that it was totally an unnecessary policy to have considering my pay arrangements at work.

if you have 6 months full, 6 months half pay then the first 12 months is not really needed but it doesnt make it mis-sold. Anything less that 12 months sick pay shows a need.