run around for PPC

lloydr_2

Hi,


I just noticed I was being charged Payment Protection Cover for a life insurance and critical illness cover I have. I called the company Axa now Friends life to be told we never have PPI on any policies, however I have a statement from when it was started in front of me showing they do. My problem is I only just noticed and its annoying as it shows it is £1.96 per month.


Also I have an issue because Axa turned into Friends Life and a couple of years ago I changed the policy to cover only life not illness, at this point I didn't notice the PPC but the policy number has changed on their system because of the change. I don't have this new number so they are looking into it for me.


I just wondered is PPC is PPI, and if I didn't want/didn't know I had it can I ask for it back?


Thanks

dunstonh

I just noticed I was being charged Payment Protection Cover for a life insurance and critical illness cover I have. I called the company Axa now Friends life to be told we never have PPI on any policies, however I have a statement from when it was started in front of me showing they do.

AXA are correct. Your policy does not have PPI. It is waiver of premium (sometimes called waiver of contribution)

I just wondered is PPC is PPI, and if I didn't want/didn't know I had it can I ask for it back?

It is not PPI. Waiver is medically underwritten (unlike PPI) and does not have any employment/redundancy cover and is a long term insurance issued by life assurance companies whereas PPI is a short term insurance issued by general insurance companies. It also falls under a different FCA classifications.

in most cases, you cant just knock it off a policy as it is part of the policy terms. It would require a new policy to be written.

You don't see it as much nowadays as people tend to be premium focused rather than benefit focused. Plus, it adds to the life assurance questions and comparison sites like to keep it simple. However, it was very common in the past and actually something that was considered best advice to have. Until recently, you had to state on the reports why it wasnt included if it wasn't.

Nothing you have said suggests any wrongdoing.

Nearlyold

The purpose of Waiver of Premium is to ensure a protracted period of ill-health does not mean the policy lapses before it can pay out because the life assured could no longer pay the premiums (due to the same ill health preventing them from working). ie You could be ill for a long period of time before passing away and the waiver would ensure the life cover was still in place to pay out.