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Opinion wanted!
Andypandyboy
Posts: 2,472 Forumite
I am doing a financial audit and I checked one of my critical illness/life insurance policies which was taken out for a fixed 15 year term mainly to cover my partner in connection with the mortgage.
I find, that despite it being taken out on an interest only mortgage it has been decreasing from the original sum assured (£33,00) and is now down to £3,000. Surely to sell that to sit alongside an interest only mortgage was misselling?
Now, I know I should have known about this and I don't expect there is much I can do about it, but I just wanted to confirm my opinion was correct.
I find, that despite it being taken out on an interest only mortgage it has been decreasing from the original sum assured (£33,00) and is now down to £3,000. Surely to sell that to sit alongside an interest only mortgage was misselling?
Now, I know I should have known about this and I don't expect there is much I can do about it, but I just wanted to confirm my opinion was correct.
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Comments
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Sounds more like mis-buying tbhAll matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.0
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Were the provider of the life insurance and the mortgage lender one and the same?
Or at least was there a connection? eg Lloyds bank mortgage and a Scottish widows policy purchased through one of their branches.0 -
Even if it were mis-sold, it has not left you worse of financially, as the premiums would be cheaper than they would have been for the correct policy.
Time to cancel it and replace it with something more suitable unless you have saved enough to pay off the mortgage.0 -
Keep_pedalling wrote: »Even if it were mis-sold, it has not left you worse of financially, as the premiums would be cheaper than they would have been for the correct policy.
Time to cancel it and replace it with something more suitable unless you have saved enough to pay off the mortgage.
On the other hand as OP is now older a suitable policy may cost more to take out.0 -
Andypandyboy wrote: »
I find, that despite it being taken out on an interest only mortgage it has been decreasing from the original sum assured (£33,00) and is now down to £3,000. Surely to sell that to sit alongside an interest only mortgage was misselling?
I don't know the answer but I always assumed that anyone with an interest only mortgage also had a mechanism in place to pay off the mortgage.
What mechanism did you have? Was it increasing in value whilst the CI cover was decreasing?0
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