Friends Life & PPI?

Gingerfurz_2

Hi,

Back when i bought my house in 2009 I was told I needed to take out life insurance, critical illness and income protection, this was £60 a month and I was told that without it I wouldn't be able to get a mortgage. I remember taking this out and then completely forgot about it for the past 6-7 years. My self and my wife pay into a joint account for all our house bills and mortgages and it covers it all and more so we barely pay attention to the account, anyway after 6 years, I looked at the direct debits and have seen a transaction for Friends life, which wasn't who I initially set up the cover with, as well as this I have since changed mortgages numerous times. After doing some research it looks like Bupa change over to Friends life, however since 2009 and our initial set up we haven't received a single letter from Bupa or Friends life regarding our cover, we have also changed mortagages and our employment situation since 2009. Is this something we can try and recoup after our initial 2 year mortgage which the cover would have covered, as I presume the remaining years we haven't been covered because our circumstances have changed. £60 a month is quite a substantial amount and I will definitely be cancelling this going forward but it would be nice to receive some compensation for the years.

Thanks for the help

[Deleted User]

Why do you think the policies stopped covering you?

dunstonh

Back when i bought my house in 2009 I was told I needed to take out life insurance, critical illness and income protection, this was £60 a month and I was told that without it I wouldn't be able to get a mortgage.

Ok. So, no PPI there then.

Was the requirement for the insurances by the mortgage adviser or the lender? for example, its unlikely it is the lender as most have no insurance insistence nowadays apart from on commercial borrowing. However, it is very common for mortgage brokers to have a requirement to purchase insurance from them to get the free mortgage advice. A model that is allowed as long as the insurance is suitable.

anyway after 6 years, I looked at the direct debits and have seen a transaction for Friends life, which wasn't who I initially set up the cover with

Friends Life is an amalgamation of Friends Provident and AXA Sun Life. Both of those companies had also bought a number of other insurers over the years. Friends Life has now been bought by Aviva. So, name changes are common and nothing to be concerned about.

After doing some research it looks like Bupa change over to Friends life, however since 2009 and our initial set up we haven't received a single letter from Bupa or Friends life regarding our cover

That is quite normal for the insurance products you have. Unless there is something to contact you about, then they will not contact you. These are not plans that renew or suffer changes of terms etc.

Is this something we can try and recoup after our initial 2 year mortgage which the cover would have covered, as I presume the remaining years we haven't been covered because our circumstances have changed.

Your assumption is not correct. You would be fully covered to the terms of the insurance whether you had a mortgage or not or whoever the mortgage was with. That is the one of the major benefits of standalone plans. You have given no valid reason for recouping any money.

£60 a month is quite a substantial amount and I will definitely be cancelling this going forward but it would be nice to receive some compensation for the years.

Are you sure it is best to cancel these? You are older now. So, replacement plans would likely cost more. The BUPA product was not bad and nothing you have said suggests any reason you wouldnt need these. The fact you seem to think they are PPI when they are not suggests you may not be in the best position to decide whether these are suitable for you are not.

kingstreet

Have you supplied your new address(es) to the insurer over the years?

If not, they may have been writing to you at an old address...

gingerfurz

I would simply be cancelling this as, we barely have a mortgage now and so the cover for this isn't required for a start, secondly I find it quite lax, that no update or contact is required by a company that takes money from you, gas/electric/water/council tax/mortgage all make sure that details are up to date and touch base with their clients. This seems like money for old rope for the insurers as they expect the customer to get in contact with them if the situation changes, giving them a get out clause if you need to make a claim and haven't updated the details.
I didn't think I needed it in 2009 really and as this was set up on a DD from my joint account I just forgot about the payments over the years. It was only when I couldn't find any paper work for Friends life I questioned the money going out the account.
I know this isn't PPI, but to me it seems like a similar kind of thing, you are made to take out cover to get a mortgage from a Broker that then gets a kick back from the insurers. Very similar practice to the PPI practices and I feel when I original got my mortgage I was naive to think it was the only way during the credit crisis of getting on the ladder. Compensation or not, its not necessarily a straight laced business and easy money for both the brokers and insurers.
I also haven't moved address but my employment situation has changed as has my wifes' and we were both already covered at work during this time too, which again was pointed out.

dunstonh

I would simply be cancelling this as, we barely have a mortgage now and so the cover for this isn't required for a start

So, you are no longer married or have children or have a spouse/partner reliant on your pension income or ability to work and bring in an income?

secondly I find it quite lax, that no update or contact is required by a company that takes money from you, gas/electric/water/council tax/mortgage all make sure that details are up to date and touch base with their clients.

gas, electric, water, council tax, mortgage are all things that require ongoing contact. The insurances you hold do not require any ongoing contact. Also, where the policies are put in place by an intermediary, the insurer has never had a direct relationship with you. Your dealings are with your adviser/intermediary/broker. It is one of the reasons why policies arranged by brokers/advisers/intermediaries are lower than those you buy direct.

This seems like money for old rope for the insurers as they expect the customer to get in contact with them if the situation changes, giving them a get out clause if you need to make a claim and haven't updated the details.

There is no get out clause. These policies are all underwritten at point of sale. Future changes do not affect them.

I didn't think I needed it in 2009 really and as this was set up on a DD from my joint account I just forgot about the payments over the years. It was only when I couldn't find any paper work for Friends life I questioned the money going out the account.

It is very rare to find someone that has no need for any one of income protection, CIC or life assurance. You appear to be saying that you are immortal and would never become ill.

I know this isn't PPI, but to me it seems like a similar kind of thing, you are made to take out cover to get a mortgage from a Broker that then gets a kick back from the insurers. Very similar practice to the PPI practices and I feel when I original got my mortgage I was naive to think it was the only way during the credit crisis of getting on the ladder. Compensation or not, its not necessarily a straight laced business and easy money for both the brokers and insurers.

Loads of differences to PPI. PPI was not underwritten at point of sale. Your policies were. PPI paid out on different events to your policies. In fact, PPI almost has more in common with your car insurance than the policies you hold.

I also haven't moved address but my employment situation has changed as has my wifes' and we were both already covered at work during this time too, which again was pointed out.

When you informed your financial adviser of your employment changes, what did they say or do?

gingerfurz

I am not stating I am immortal at all? this type of cover isn't something you have to have, if it was then it wouldn't be an option and everyone would have to have it. I am trying to find out if any of the money I have paid out over the years can be recouped as I feel I was incorrectly sold the cover and wouldn't have opted for it in the first place had I known more about it, I don't think that is hard to understand from my post nor unreasonable.

You've stated that cover goes up the older you get, well doing an online search I can reduce this dramatically if I wanted to continue cover for my wife and I by around 35% and this was 6 years ago this was taken out.

When I stated I had cover at work, as my wife did I cannot recall the conversation but it was at the start of the process in 2009. I was covered by ten times my salary and my wife 5 times hers, this more than covered our mortgage options at that point in time and more. I remember feeling I had no option and still went with it going off the workers advice. However since then I have not required a broker for my mortgage and haven't used the services since, simply because I didn't feel I was getting value for money and the rates I was being offered I could get online and were better - and I think this point is proven by the cover I've mistakenly took out, as again better options are available online, rather than using a broker like you have stated.

The long and short is I've paid £60/month, over 6 years and I just have to write this off as something I shouldn't have done and paid more attention too. Not the outcome I was hoping for but.

McKneff

Just thank your lucky stars you didn't have to make a claim. That would make you dead or seriously ill.....

dunstonh

I am trying to find out if any of the money I have paid out over the years can be recouped as I feel I was incorrectly sold the cover and wouldn't have opted for it in the first place had I known more about it, I don't think that is hard to understand from my post nor unreasonable.

In which case, nothing you have written suggests you are entitled to a refund.

You've stated that cover goes up the older you get, well doing an online search I can reduce this dramatically if I wanted to continue cover for my wife and I by around 35% and this was 6 years ago this was taken out.

Unlikely that is like for like. 6 years wouldnt make much difference unless you are over 40. However, in most cases you cant buy proper income protection from online comparison sites. So, that would suggest you are comparing prices of less cover.