life insurance ?misold

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
5 replies 1.2K views
OnetwothreefourOnetwothreefour Forumite
28 Posts
Hi everyone...looking for some advice about whether you can claim about possible missold life insurance that was taken out with mortgage application??I know that PPI claims can be made for loans/cards etc but not sure about life insurance?in summary,was advised to take it out when at the time of application we did not have any dependants and have an NHS pension that would 'pay out' should the inevitable happens!!
Is this worth following up and if so how do i go about it??thanks in advance :0)

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  • dunstonhdunstonh Forumite
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    I know that PPI claims can be made for loans/cards etc but not sure about life insurance?

    Any product can be potentially mis-sold.
    in summary,was advised to take it out when at the time of application we did not have any dependants and have an NHS pension that would 'pay out' should the inevitable happens!!
    Is this worth following up and if so how do i go about it??thanks in advance :0)

    You use the word "we" which suggests it was not a sole mortgage. i.e. you have a partner/spouse. So, a recommendation for life assurance would be expected in that case.

    The NHS pension is to provide an income in retirement. Whilst there is a small amount of death in service, it is designed to make up for a couple of year lost income and/or reduced pension entitlement. It is not designed to repay debt. it is also not guaranteed and is subject to change. You would not expect an adviser to include it in their shortfall analysis for debt provision. you would expect it to be included in a shortfall for income or family provision though.

    Children are not the only dependents. A couple are dependent on each other. if one dies, the other takes on the debt whilst losing an income and future pension provision in the process.

    So, in summary, nothing you have said suggests any wrongdoing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hi..thanks for the feedback...much appreciated :0).
  • Ren11Ren11 Forumite
    2 Posts
    Hi. I'm after some advice on same subject. I have taken endowment mortgage in 2000 with critical life cover. Subsequently in 2003 via same mortgage advisor I remortgaged to repayment-but kept the endowment. I was sold another life insurance with the remortgage and believed that was the requirement. The advisor was fully aware we kept the endowment. I have contacted the ombudsman who today advised me that " complaint concerns activity that was not regulated activity at the time I was sold it in 2003. This is because until Jan 2005 a regulated activity was the sale or administration of a contract whose primary function was investment. It did not encompass insurance contracts such as life insurance or critical illness plans which have no investment element. This activity has only become regulated by the FCA in jan 2005- therefore they can not investigate"
    I would appreciate your advice if this is a no go area at all or just no go for the FCA but I should contact someone else?
    Thank you
  • dunstonhdunstonh Forumite
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    I would appreciate your advice if this is a no go area at all or just no go for the FCA but I should contact someone else?

    The ombudsman is correct. Insurance became regulated in Jan 2005. There is no-one to complain to.

    The FCA do not investigate complaints. Plus, the firm was not regulated at point of sale. So, they would have no remit on that front either.

    No go here.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Ren11Ren11 Forumite
    2 Posts
    Thank you- appreciate your response.
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