Mis sold Life Insurance

Midna

Hi could someone advise please.
since 1997 I have been paying life insurance attached to my mortgage with Lloyds Tsb (now TSB) I was told at that time and when I have requested additional funds, that I had to take their life insurance (Scottish Widows) they knew my circumstances and that I already had life insurance with my employer but I still had to take. Recently requested further additional fund attached to my mortgage and again because of the increase in mortgage had to get larger amount of life insurance. I don`t need this insurance. In the event anything happens to me I get 3 -4 times my salary which would more than cover the cost of mortgage. Think I`ve been mis sold for a number of years. What an idiot...

dunstonh

I have been paying life insurance attached to my mortgage with Lloyds Tsb (now TSB) I was told at that time and when I have requested additional funds, that I had to take their life insurance (Scottish Widows) they knew my circumstances and that I already had life insurance with my employer but I still had to take

Two problems there
1 - if you had to have it then you had to have it. They are allowed to insist on it. (until the mid to later 90s, it was a common requirement to have it)
2 - if you didnt have to have it but they lied to you then you are unlikely to have any evidence to support your allegation.

I don`t need this insurance. In the event anything happens to me I get 3 -4 times my salary which would more than cover the cost of mortgage.

Death in service is discretionary and is not normally paid to your estate. It is also designed to go some of the way to replace lost income and pension and not really suited for debt provision. So, it is normally not included in the needs analysis against debts (but would be for say family provision).

magpiecottage

Midna wrote: »

In the event anything happens to me I get 3 -4 times my salary which would more than cover the cost of mortgage.

Can you prove that, in 1997, when you took out the mortgage, your employer would have been contractually obliged to provide that cover, regardless of any change in your health or employment status until the mortgage was due to be repaid?

If so, then you may have been missold a policy. If not then it was not suitable whereas a life policy from an insurance company with the specified term would be because, once in force, the insurer would be obliged to keep it in force until you died, stopped paying premiums or reached the end of the policy term.