Flexible Mortgage Protection

volsung37

Hi All

I would be very grateful for any help with this.

My partner was a nurse for 25 years before leaving on grounds of ill-health 6 years ago.
In 2001 she purchased a property under a co-ownership scheme ie she would have a mortgage on half of the property and pay rent on the other half.
The total cost of the property was £57950
She was encouraged to take out the policy below by the estate agent dealing with the property sale.
She has been paying Flexible Mortgage Protection (offering terminal illness cover) to Phoenix Life (or one of its previous incarnations) since 2001 for the whole amount of £57950 even though her mortgage is half this amount.
She has been unemployed since 2001 and does not receive any pension etc. She is now being asked to pay £51.74 per month for this policy.
I have a suspicion she may have been mis-sold this. Is it treated in the same way as PPI?
Is there any point in her continuing to pay the premiums as they are a substantial burden on her reduced finances? The policy end date is 2035.

Nearlyold

Does anyone else live in the property with her, such as yourself for example? If she only retired from nursing 6 years ago on ill heath grounds how has she also been unemployed for the last 15 years.

What do you mean by is it treated the same way as PPI? Why do you suspect it was Missold?

dunstonh

She was encouraged to take out the policy below by the estate agent dealing with the property sale.

Quite common as that is how most brokers make made their money (which then allowed them to give free or cheap mortgage advice). That model is allowed as long as the insurance is suitable.

She has been paying Flexible Mortgage Protection (offering terminal illness cover) to Phoenix Life (or one of its previous incarnations) since 2001 for the whole amount of £57950 even though her mortgage is half this amount.

You would expect a greater amount to allow the co-owner to be bought out.

She has been unemployed since 2001 and does not receive any pension etc. She is now being asked to pay £51.74 per month for this policy.

Your dates don't tally. She was a nurse for 25 years until she retired on ill health 6 years ago.... but she has been unemployed since 2001 (about the time she took the mortgage). Can you clarify.

I have a suspicion she may have been mis-sold this. Is it treated in the same way as PPI?

its life assurance. Not PPI.

As Nearlyold says above, does she live alone (either now or when she got the mortgage)? Is there a partner/children etc?

volsung37

Thanks for replies. Not sure why I wrote she has been unemployed since 2001 (senior moment?). She has been unemployed since 2010. She has one child who does not live with her. I was asking whether this type of insurance could have been mis-sold in the same way PPI was ie not needed and overpriced. No-one else lives in the property with her. To me it seems very expensive for the cover offered.

dunstonh

was asking whether this type of insurance could have been mis-sold in the same way PPI was ie not needed and overpriced.

Overpriced doesnt apply to life assurance.

To me it seems very expensive for the cover offered.

Not for the year it was taken out and her age. Life assurance was more expensive in 2001 than today.

volsung37

Thanks dunstonh. Out of interest do you think its overpriced for the benefit offered?