Compulsory life insurance?

badgerwarriors

Hi all

Back in 2000 my boyfriend and I took out our first mortgage. At the time our broker/financial advisor told us that life insurance was compulsory.

We took out the mortgage with one company and life insurance with critical illness cover with another company.

Our mortgage is nearly paid off and someone recently told me that all though recommended, life insurance isn't actually compulsory. Is this correct? Our financial advisor retired a couple of years ago so we can't contact him.

We moved mortgage companies and life insurance to new companies in about 2008.

I want to understand if we were given the correct information or if we were mis-sold? I was hoping someone could clarify this for me.

Many thanks

[Deleted User]

It could have been compulsory, depending on how you broker was being remunerated. You need to check the original docs.

dunstonh

Back in 2000 my boyfriend and I took out our first mortgage. At the time our broker/financial advisor told us that life insurance was compulsory.

quite possibly it was.

Some lenders still had mandatory life assurance in 2000. However, brokers frequently required you to buy insurance from them to get free mortgage advice. A very common model and one that is allowed as long as the insurance is suitable.

badgerwarriors

Thanks. I'll have a look through the paperwork from the original mortgage lender and for the insurance.

I wasn't sure if we were given the correct information and it sounds likely that we were after all.

Thanks again

dunstonh

I'll have a look through the paperwork from the original mortgage lender and for the insurance.

If it was a broker requirement, it would not be in the mortgage paperwork.

I wouldnt waste your time anyway. It is pre-regulation so even if it was wrong, you have no-one to complain to.

magpiecottage

Proving that the broker actually said it was compulsory is also going to be difficult.