Inadequate PPI Cover

MrsHK

In 2001 we took out our first mortgage and were advised to take PPI cover. Having recently been for a mortgage review it was pointed out that this PPI doesn't cover the cost of our mortgage and only kicks in after 30 days. The PPI is for both my husband and I. Until fairly recently my other half has always been in a job in which he receives full pay if he is off sick (still does for a few months). The staff member we were with called in another more senior staff member regarding getting our insurances looked at and she mentioned it to him and the two of them looked a bit bemused (although didn't say as much, but the glances and confused expressions said a lot) as to why we have this PPI when it doesn't cover the cost of the mortgage and why it was for my husband when he didn't require it. We are due a review on this, along with life and critical illness insurances as we seem to be paying over on one and not enough on the other.
We would still want some protection on our mortgage but I just wondering if we could claim for the PPI we've been paying which hasn't been adequate should we have needed it? I'm a bit confused by it all to be honest!

dunstonh

We are due a review on this, along with life and critical illness insurances as we seem to be paying over on one and not enough on the other.

On that particular point, do not use the bank/building society for that sort of thing. They are really expensive distributions channels and tied to one or just a handful of providers. Often their products are cut down from the IFA version too. You should use a local IFA.

We would still want some protection on our mortgage but I just wondering if we could claim for the PPI we've been paying which hasn't been adequate should we have needed it?

Maybe see a local IFA and see what they say about what you have. They can also help you put in a complaint if one is needed. Inexperienced bank staff are not helping you find this out.

magpiecottage

MrsHK wrote: »

it was pointed out that this PPI doesn't cover the cost of our mortgage

This could be due to changes in your mortgage over the years so that what was suitable fifteen years ago might not be a good match.

MrsHK wrote: »

and only kicks in after 30 days.

That is normal too. Most people will have a month's pay at the end of each month. so it would be a further month until they need an income.

MrsHK wrote: »

The PPI is for both my husband and I. Until fairly recently my other half has always been in a job in which he receives full pay if he is off sick (still does for a few months).

The question would also be how long sick pay would be received for. Full sick pay for a week would be of little use if you were sick for a year. In addition, it would cover redundancy.

So I am not sure that it was a missale.

MrsHK

Thank you for your replies. We will look for a local IFA for advice. I have been thinking about moving the insurances away from the bank.