Please help... Is this even a claim?

tintin1984

Hello all,

First of all I'm quite new here, so please bare with me and thank you for any help in advance.

Here goes. I'm here on behalf of my parents (they're as lost as I am).

Back in 2003 they took out a mortgage with the Virgin One account. At the time the bank insisted they take out their life insurance product at £120.00 per month to cover the balance of the mortgage should anything happen to them. It runs till 2020.

They have been paying it perfectly since and it has cost them a pretty sum. When they took it they were not given the opportunity to quote elsewhere for life insurance and were lead to believe this was the only option (it may well have been as I really am not sure). They did have endowments and could have likely covered the cost of the house should anything have happened.

The insurance provider, Windsor Life, has since changed name to ReAssure Limited. After a few phone calls they simply will not post out the policy agreement (for reasons unknown) and only keep sending us a plan certificate.

My question here is simple. Did the bank act ethically? Should they cancel this insurance and seek a cheaper alternative? Can they claim back this cost if they were lied to about needing it to open the mortgage?

Any help you can offer will be greatly appreciated.

dunstonh

Back in 2003 they took out a mortgage with the Virgin One account. At the time the bank insisted they take out their life insurance product at £120.00 per month to cover the balance of the mortgage should anything happen to them. It runs till 2020.

Whilst less common by 2003, there were still some lenders that insisted on life assurance as a condition of borrowing.

After a few phone calls they simply will not post out the policy agreement (for reasons unknown) and only keep sending us a plan certificate.

That is the correct position they should take. This is a life assurance policy after all.

Did the bank act ethically?

If they needed it as a condition of borrowing then yes. If they didnt then no. However, most couples take out life assurance with a mortgage. So, nothing unusual in that.

Should they cancel this insurance and seek a cheaper alternative?

If that is possible then it should be looked at.

tintin1984

Thanks so much for your help! Really appreciated!