Mortgage protection from redundancy

Hockeygirl

My husband was encouraged to take redundancy insurance when we took out our last mortgage, regardless of the fact that he was a director of a business and therefore could not be made redundant technically. The company wanted to make him redundant did not replace him but as a director he had to come to an agreement for a payoff and then resign. When we tried to claim for redundancy it was only then that we were told that he didn't qualify, because he resigned. Was this right or were we mis -sold this specific type of insurance?

Would be glad to hear peoples thoughts?

liney

So you went ahead and took out redundancy insurance knowing he could not be made redundant?

Directors can be employees, so it was not unreasonable for a bank to offer the insurance in my opinion. I would argue you might have a case if the loan was on condition that you took insurance, but it seems you made the decision with your eyes open.