Live Insurance Mortgage Cover Single Female

rippers255

When my wife purchased her house (mortgage Santander) she was advised to get life insurance.

It was not a condition of the mortgage.

She was, at that time, a single female with no dependants.

There was apparently no discussion of income protection due to working for the NHS (presumably due to reasonably good sickness benefits)

Is there any basis of complaint? Is doesn't seem right to be to pay £18pcm (now been paying for 6 years) for £80k worth of life cover with no dependants.

R

[Deleted User]

Life insurance has no overlap with income protection.

If she dies you stand to gain from the proceeds.

If the insurance is of no use to you then cancel it, but nothing you've said indicates it was mis-sold.

rippers255

Thanks for the prompt reply.

My query relates to 2006 when she was single, no dependants and no one else to benefit from the policy.

Mortgage borkers advised to have tapering life insurance to cover the cost of the mortgage

[Deleted User]

rippers255 wrote: »

My query relates to 2006 when she was single, no dependants and no one else to benefit from the policy.

Still doesn't appear to be mis-sold (unless she is immortal).
No parents? Funeral arrangements by the local Council?

dunstonh

If the person is single, living alone, no children and has no other financial dependents then she should not have been sold life assurance.

There has to be an insurable need. However, if the life assurance has critical illness cover in it, then its normal to include life assurance as it only adds a couple of pence to the monthly premium and being a long term contract, it is logical to include it.

rippers255

Thanks.

Would you be able to clarify the last paragraph?

There is terminal illness benefit and critical illness cover on the policy

R

-taff

if the critical illnes and life assurance is bundled, the life is a few pence extra, so i makes sense to include it.
I have critical illness and life cover and I'm a single female with no dependants - the life cover is part of and not separate from the critical illness.

rippers255

Thanks.

Looking into this further she was (still is) an NHS employee with NHS Pension Life Benefits of 2x salary.

Which is slightly smaller than the amount insured.

So it appears that there was no insurable need for the life cover, but there is arguably for critical illness.

Although as a single adult with no dependants with adequate income protection with plenty of cover for mortgage repayments. Is crticial illness really required?

R

dunstonh

There is terminal illness benefit and critical illness cover on the policy

That means a complaint is unlikely to succeed as you more or less get the life assurance free with CI.

Looking into this further she was (still is) an NHS employee with NHS Pension Life Benefits of 2x salary.

irrelevant.

So it appears that there was no insurable need for the life cover, but there is arguably for critical illness.

correct

Although as a single adult with no dependants with adequate income protection with plenty of cover for mortgage repayments. Is crticial illness really required?

Yes. The financial need is typically around 4-5 income plus any debts.

There is no mis-sale here due to the CI

rippers255

Thanks for the help. Much appreciated.
R