Reclaiming Mortgage Life Insurance - Possible?

Magic_Numbers

I have been SO disorganised with money/financial stuff over the years, and have given myself more than a few headaches in the past. I have been trying to savvy up a lot more recently & have sorted out a whole lot of things, including a reclaim for PPI on an old credit card, which landed me a nice cheque for around £1500.

I have been living in my current house for 8 years. We bought it (my wife & I) via Your Move.

At the time we were told we must take life insurance to cover the value of the mortgage - fair enough we thought - and they proposed us there & then to what is now Aviva (Norwich Union). The insurance wasn't agreed immediately and we had a few days wait until it was approved.

I have (stupidly) kept this policy going since then, and I admit I thought it was reasonable, but I didn't have any benchmarks to compare it to, and being naive I trusted Your Move to look after us.

I recently re-mortgaged - well, re-structured it somewhat & decided to see what life cover was out there as an experiment.

I am shocked to say the least. I was approved for cover (again, after a few days wait) by another insurer (Beagle Street) for more cover than Aviva, for around a third of the price!

I will be shopping this around, but is there any mileage in trying to claw back some money from Aviva/Your Move, or am I wasting my time & should I just move on & forget about it?

Lesson learned though...

dunstonh

I have (stupidly) kept this policy going since then

Why stupidly? Most people take out life assurance for the mortgage. It is a logical thing to do.

I am shocked to say the least. I was approved for cover (again, after a few days wait) by another insurer (Beagle Street) for more cover than Aviva, for around a third of the price!

Life assurance has come down in cost over the years. However, a 1/3rd price suggests it is not like for like basis. Maybe you had guaranteed premiums and the current are reviewable or a yearly renewable assurance. Or maybe you had critical illness included but not now.

is there any mileage in trying to claw back some money from Aviva/Your Move

Not unless you are immortal. You had a financial need for it.

Magic_Numbers

dunstonh wrote: »

Why stupidly? Most people take out life assurance for the mortgage. It is a logical thing to do.


Life assurance has come down in cost over the years. However, a 1/3rd price suggests it is not like for like basis. Maybe you had guaranteed premiums and the current are reviewable or a yearly renewable assurance. Or maybe you had critical illness included but not now.



Not unless you are immortal. You had a financial need for it.

I apologise, it's been a while, but I'll address these now.

I didn't fully make myself clear with my original post.

My Aviva policy, which is still running by the way, does not include critical illness cover. It does include Mortgage Payment Protection however. It is this which I was concerned about, I really didn't make that clear in my original post.

The Mortgage Payment Protection section of the policy was the part of the insurance which we were informed that we must take out along with the life cover.

In light of the massive amount of PPI claims, what I guess I really wanted to know is does Mortgage Payment Protection Insurance fall into the same category, as if it does I believe I have a case.

Cheers, sorry again for resurrecting this dinosaur of a thread!!! :beer:

dunstonh

In light of the massive amount of PPI claims, what I guess I really wanted to know is does Mortgage Payment Protection Insurance fall into the same category, as if it does I believe I have a case.

The PPI issue is mainly banks. Adviser/brokers account for under 1% of successful PPI mis-sale complaints.

Anything can be mis-sold potentially. However, nothing you have said in either post indicates any mis-sale. What would be your reasons for complaint?

Your timescales also make it pre-regulation. Brokers/advisers did not become regulated until 14th Jan 2005. A smaller number were members of an earlier body which would require them to consider pre-regulation complaints.