life assurance - possibly missold?

Brightspark87

good morning all

a good friend of the family asked me about the below:

when I read through it now it does look much like life insurance, although all the paperwork was given to me together with the mortgage and it never occurred to me to read through it all – I thought I was getting building cover – which when I started doing the pension research last year realised that I didn’t need as it was covered by the service charges on the flat – guess I should have paid more attention from day one

I think she has the right to complain, she has no dependents, single and the mortgage is interest only (but flat worth £240k mortgage £88k)... would be grateful of your thoughts!

dunstonh

I thought I was getting building cover

That is highly unlikely. Life assurance applications require your GP details and a selection of medical questions. Is someone really going to supply all that for home insurance? And when the letter from the life assurance company thanking them for their life assurance application arrives.... And when the copy of the life assurance application arrives (where online submission was made).... and when a copy of the quote and cancellation rights of the life assurance arrive....... and when the policy document for the life assurance arrives.... Are they still going to think it is buildings insurance?

I think she has the right to complain, she has no dependents, single and the mortgage is interest only (but flat worth £240k mortgage £88k)... would be grateful of your thoughts!

Everybody has the right to complain. If she is living alone and has no dependants then there seems to be no financial need.

However, a couple of things to note:
1 - if there is critical illness cover included, then life assurance bolted on is acceptable and normal as it usually costs little or nothing to include it.
2 - The FOS have recently started rejecting complaints for life assurance for single/no dependants on long term secured debts given the long term nature and the unlikely situation that the person will be single for the whole period of the debt.

lovinituk

Brightspark87 wrote: »

all the paperwork was given to me together with the mortgage and it never occurred to me to read through it al

What is wrong with some people? Probably the biggest financial commitment of their lives and they don't read everything?! And then sign to say they have read and understood! Unbelievable!!

InsideInsurance

Brightspark87 wrote: »

I read through it now it does look much like life insurance

So they still dont know what it is?

As has been said, if its a normal life policy then the story that they thought it was buildings insurance doesnt wash because of having to declare GP details and having to consent to a medical report etc.

There is a chance is ASU/ MPPI and the old bank sold versions of this did at times have a life cover element but also covered accident, sickness and unemployment which would most likely be useful for her.

jeffnail

Is it a life policy with add on's?

Brightspark87

hi! no its not... its jsut straight life assurance but she was told it was buildings she believed and that she had to have it