Critical Illness cover on Endowment Mortgage

Bennowolves

On my first property I purchased in 1998 I was advised and took out an endowment mortgage. Obviously this was not a wise decision so when we moved house in 2003 we took out a repayment mortgage on the increase in borrowing and kept the endowment mortgage running as well. This was called a 'part & part' mortgage. This has run until now. I have had no correspondence from the endowment company until now. When I found some details of my endowment policy and asked for an update. The company sent me the details that they had confirmed over the phone. Within the pack there were letters that they had sent to my previous address warning me of the fact the policy was not going to cover the mortgage amount. However also within the correspondence it detailed critical illness cover. This was something I was not aware of as I didn't need or ask for this when taking out the endowment. (My work insurance covers for these sort of issues and I've been at the same company all this time). Is this the same as PPI and therefore I can make a claim for miss selling. If so how do I go about it. Some advice would be appreciated, Thank you in advance :beer:

antrobus

Bennowolves wrote: »

On my first property I purchased in 1998 I was advised and took out an endowment mortgage. Obviously this was not a wise decision so when we moved house in 2003 we took out a repayment mortgage on the increase in borrowing and kept the endowment mortgage running as well. This was called a 'part & part' mortgage. This has run until now. I have had no correspondence from the endowment company until now. When I found some details of my endowment policy and asked for an update. The company sent me the details that they had confirmed over the phone. Within the pack there were letters that they had sent to my previous address warning me of the fact the policy was not going to cover the mortgage amount. ....

OK. So when you moved house in 2003 you forgot to tell the endowment provider that you had moved, but now you've updated them. It's no biggie.

Bennowolves wrote: »

...However also within the correspondence it detailed critical illness cover. This was something I was not aware of as I didn't need or ask for this when taking out the endowment. (My work insurance covers for these sort of issues and I've been at the same company all this time). Is this the same as PPI and therefore I can make a claim for miss selling. If so how do I go about it. Some advice would be appreciated, Thank you in advance

No, it's not the same as PPI. But you can complain about the sale of any financial product. You just write to the company that sold you the product.

Of course, endowment policies frequently did include a critical illness element, in that, in addition to promising to repay the mortgage on the insured's death, it would also promise to do so if the insured was diagnosed with a specified critical illness.

Is that what you works insurance also promised to do?

magpiecottage

No it is not PPI

Why did you not bother to tell your insurance company that you were paying a substantial sun to each month where you now lived?

dunstonh

However also within the correspondence it detailed critical illness cover. This was something I was not aware of as I didn't need or ask for this when taking out the endowment.

Not plausible. Maybe you didnt take an interest or maybe your memory has faded. However, you would have had an illustration at point of sale, one sent with the cancellation rights, a suitability report detailing what you had and the medical questionnaire (which is longer for critical illness cover)

(My work insurance covers for these sort of issues and I've been at the same company all this time).

Whilst there are group critical illness schemes available for the workplace, they are extremely rare. Are you sure you have workplace CI cover and are not mixing it up with sick pay?

Is this the same as PPI and therefore I can make a claim for miss selling.

No its not PPI. That is a bit like asking whether car insurance is PPI.

You can complain about anything you like. Even the colour of the carpet in your local bank. However, your "complaint" does not seem plausible given the audit trail that would have existed (and PPI didnt have that level of audit trail which is partly why there is an issue there).

Bennowolves

Antrobus - Yeh this cover come with my works package when I joined the company, thanks.
Magpiecott- I didn't know I had been paying for critical illness cover until they sent me a statement recently received as they had been going to my old address. Thanks for your reply.
Dunstonh - I was 21 at the time so must admit I didn't take much notice of the fine print. Yes package is excellent it even included final salary pension until that was whipped away 6/7 years ago. So it's not the same as PPI, I understand.... Not sure the sarcasm is necessary but thanks all the same

[Deleted User]

Bennowolves wrote: »

Yeh this cover come with my works package when I joined the company

Even in the unlikely event that your work "critical illness" cover duplicates exactly the cover you purchased, that's not in itself a reason for complaint. Would your employment cover really pay your mortgage off? Or would it simply be a (lesser) lump sum?

You say you were "not aware" of this Critical Illness cover, but I think it's already been established that this would have been clearly explained to you at point of sale and the audit trail will support this to the hilt.

You ask if this is the same as PPI, but you might just as well ask if it's the same as house insurance. It's not PPI, it's Critical Illness Insurance..

Bennowolves wrote: »

it's not the same as PPI, I understand.... Not sure the sarcasm is necessary but thanks all the same

I'm not sure there was any such "sarcasm". Your question really was similar to asking if black is white..

magpiecottage

Bennowolves wrote: »

this cover come with my works package when I joined the company

And would have ended when you left the company - whether you still had a mortgage or not,

As dunstonh says, you would have received a personal illustration - and a generic Key Features document when you took the policy out which detailed the cover. If you did not take the time to read it, I think the fault rests with you.

Similarly, if you did not tell the insurance company you had moved, it is difficult to see how it is their fault that they continued to write to your old address.