Miss sold life cover on draw down

ruppert

After taking a draw down on my mortgage I was sold life and critical illness cover for this amount. I recently checked this policy with the new provider and it turns out the life cover was for a repayment mortgage not an interest only mortgage. I am currently half way through my term and the amount covered by the policy has been reducing in line with a repayment mortgage not fixed as you would expect with life cover for an interest only mortgage. What should I do? Have I grounds for a claim?

dunstonh

After taking a draw down on my mortgage I was sold life and critical illness cover for this amount.

A very common thing to happen and quite normal. Indeed, not having life assurance or Life & CI would be unusual.

I recently checked this policy with the new provider and it turns out the life cover was for a repayment mortgage not an interest only mortgage.

Not good but an error that you may well have actually benefited from.

What should I do? Have I grounds for a claim?

You are not dead. so, you cant claim. However, you can complain but you wont gain financially from it as you have been paying less each month than you should have been had you been sold a level term assurance. If you are good health then arrange a new policy. It should be cheaper or comparable given reduced term plus, life assurance is cheaper than historical pricing. If you are in poor health then you may need to consider a complaint to get the policy converted.

ruppert

Thank you dunstonh for your help.