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PPI and Direct Line
SnakeDoctor_2
Posts: 52 Forumite
For a few years I had a Direct Line Mortgage. One of the conditions to get it was that I took out a Direct Line Life Insurance policy to cover the mortgage value.
Is the classed as PPI, and can I claim the premiums back?
Thank you
Is the classed as PPI, and can I claim the premiums back?
Thank you
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Comments
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Life cover is not PPI. Life cover pays out if you die (presumably in your case a lump sum to clear the mortgage). PPI pays a monthly income for a period of time if you are off work due to illness injury or made redundant.
On what basis would you be claiming the premiums back, was there no need for the life cover?0 -
Thank you Nearlyold. No, I didn't need the life cover as my employer would have paid out enough to cover the mortgage if I died in an accident.0
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It doesnt matter if you had death in service. If life assurance was a condition of borrowing then you have no choice and it was not mis-sold.
Even if the sale was option and advised, death in service can be eliminated from the shortfall analysis as it is discretionary and its main purpose is to make up for short term loss of income or reduced pension entitlement.
Most people do not die in an accident. So, accidental death cover is not a replacement for life assurance.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Could you also guarantee you would be at that firm for the full length of the mortgage (never move jobs, never face redundancy, removal of benefit etc)?
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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