Legal and General MPI, ppi and reducing work hours

missma

Hi all


May not have named my post well. Anyway I have a Mortgage Protection Policy to cover Accident and Sickness for 12 months should I be ill, deferred for 60 days, with Legal and General. I think I took it out with one of the mortgage shops. I have had the policy since 2008. I rang to change my address a couple of weeks ago and was told that was fine and checked mortgage payment now. I was also asked if my work hours had changed I advised they would be reducing from 40 to 32 a week. The call handler advised me, having checked with someone that I need to phone in January when my work hours reduce. He advised that I would probably not be entitled to the same pay out and also they would review my whole policy at this time.


I am paying £12.57 a month, monthly benefit is £610. I do not really understand why I would not get the same money, reducing work hours due to now having a child. I am worried if they review whole policy that my health will be relooked at, as I now have a prolapsed disc in neck and possibly will need surgery.


I also have noted that I must be paying in the monthly payment £2.08 PPI, why would I be paying this and should I be reclaiming it and if so to who? I am not sure if I have paid PPI on other things.

dunstonh

I also have noted that I must be paying in the monthly payment £2.08 PPI, why would I be paying this and should I be reclaiming it and if so to who? I am not sure if I have paid PPI on other things.

What you describe would see the whole premium classed as PPI. Not that there is anything wrong with that. Can you break down what you are paying?
Why do you think you should be complaining about it?

missma

Hi I think I might have posted in wrong place by mistake and not sure how to change? It was more my reduction in work hours I am concerned about and then the whole policy being reviewed

I am currently paying £12.69 a month benefit cover £610 for 12 months. Based on salary just over 28k, forty hour week.

dunstonh

The key thing is your salary normally. Not the hours. If your salary is reduced, then you may not have enough to allow the sum insured. So, it depends on what it drops to.

missma

Ok thanks, but do you know why they review health e.t.c. to be honest I did not know I ever had to inform them of reduced hours

magpiecottage

It is normal for long term income protection policies to have a maximum payout.

However, a policy that only pays out for six months or a year is short term and if it is intended to meet debt repayments is unlikely to be affected by income per se.

There is also the question of whether reducing entitlement simply because of reduced hours as a result of maternity is sexual discrimination.

Although we do not have the full story, it sounds like somebody might have go the wrong end of the stick.

missma

It would be returning from maternity leave I am initially in December, going to be on Annual Leave and still on my same contract. I am then reducing hours to 32 per week plus sleep ins, in January, was advised by L&G I need to phone them then. I am merely reducing hours due to childcare costs. I am really not sure if I would have taken this policy if I was fully aware of this. I also feel that due to being diagnosed with prolapsed disc in summer, that I felt this policy may have helped should I need time off for surgery. However if they review my medical history when I phone about hours reduction, I kind of feel what is point continuing to pay.


We have recently moved and had applied for similar cover with Liverpool Victoria, but they have sent me numerous Questionaires since June and still do not know outcome. Also they have said they were sending stuff that never arrived to G.P. and myself, so not sure would be happy with them