MPPI - been paying for years without realising and mortgage has changed

shimmy-shang

Hi there

I'm not the smartest cookie when it comes to looking after my money!

I noticed a direct debit on my account that's been coming out for years from ROYAL LONDON MIS. I contacted the company and it turns out I've been paying for MPPI for 15 years. I can't remember signing up for this but I guess I did.

However, I changed my mortgage provider (from Abbey National to Nationwide) some time ago when I remortgaged. So the existing PPI doesn't reflect the size of my mortgage.

Is the cover still valid?

Have I been missold or not advised correctly?

Thanks for your help!

ACG

Cover will still be valid, although it usually only pays your mortgage payment or mortgage + associated bills.

So if your mortgage payments have reduced then chances are you have been over insured, if your payments have increased then its under insured.

Its been miss sold if you did not know about it, but that is completely different to not needing it.

dunstonh

Have I been missold or not advised correctly?

You havent said anything which suggests mis-sale or mis-advised.

Is the cover still valid?

Most MPPI plans cover any lender. it is only the lender's own brand product which can have them as only lender where an issue could arise.

Are you sure it is MPPI and not term assurance or PHI? Royal London may have had an MPPI product but they are a life assurer and more commonly associated with life assurance class products.

kingstreet

Royal London MPPI?

Really?

If you said life, critical illness and long-term income protection cover (PHI) I'd find that more plausible.

Short-term Accident, Sickness & Unemployment cover (ASU), the kind of "PPI" product sold with most mortgages was provided by general insurers like First Assist, St Andrews or maybe Aviva.

Mutuals like Royal London normally farmed out their unemployment cover to the likes of the above, holding the risk on only the long-term benefits I mentioned earlier as more plausible.

It is your own responsibility to ensure your protection continues to meet your changing needs, as no-one but you tells your insurer your mortgage or other circumstances have changed.