Life insurance PPI

Snoopydog_2

I have just taken a look at my level term life assurance taken out when we got our first mortgage. I noticed it has a PPI component. Can I reclaim this PPI component. We had no idea we had it. My husband was unemployed for 1year and we didn't know we had it to use. The recent mortgage adviser at the bank pointed out we had it when reviewing our mortgage. Many thanks in advance for your help.

magpiecottage

It seems to me that you (and, apparently, your bank adviser) are mistaken.

It is possible that it has a "waiver of premium" which meets the cost of cover in the event of long term sickness, but that is not PPI, which covers loan repayments.

It is also possible that you have term assurance and PPI for the mortgage as part of a package including more than one product.

Whether you have grounds for a complaint about it to be upheld would depend on what you actually have, when it was sold, and what you were told at the time.

dunstonh

I have just taken a look at my level term life assurance taken out when we got our first mortgage. I noticed it has a PPI component.

Life assurance doesnt have PPI on it.

The recent mortgage adviser at the bank pointed out we had it when reviewing our mortgage.

Just tells you the low standard of bank sales reps nowadays.


There are two bolt ons available for life assurance. One is waiver of premium and the other is critical illness (years ago, you could also bolt on terminal illness cover but that is typically included at no cost nowadays). PPI is not an option.

I suspect your low skilled sales rep is mixing up waiver of premium with PPI. However, waiver is a different product. For example, there is no redundancy/unemployment cover with waiver.

The only caveat to above is if you had a multi-segment plan but that wouldnt have PPI is part of the life assurance. It would be it's own segment and wouldnt be against the life cover.