Mis sold Life Insurance

Moody_2

I was sold a life insurance 3 yrs ago in conjunction with a mortgage me & my partner took out. The monthly payments were very high (double what we're paying now) and I was told that in order to get the mortgage I had to buy this particular insurance. We paid it for about two years but then let it lapse, now the broker is trying to sue for 2.5K. We only owe £400 on the policy, and we'd be quite happy to pay that. Can any insurance be mis sold, or just PPI? Is the broker in his full rights to that or could we turn to the Finacial Ombudsman on the grounds that we were mis sold a policy that clearly weren't in our best interests.

Moody_2

It seems to provide me with more or less the same cover I have now, just with a 100% price increase. I was also told that the insurance was a must in order to get the mortgage. He didn't present me with any other options at all, just the one quote. I unfortunately didn't realise that I should have been a bit more savvy, it was the first property I bought, and the whole thing has been a disaster (but that is another story) as I was very gullible and took anyone's word for gospel

dunstonh

Can any insurance be mis sold, or just PPI?

anything can be mis-sold.

I was also told that the insurance was a must in order to get the mortgage.

Some lenders do insist on it still (not many but they do exist). Some brokers are fee based but offset the fee against commission earned. That appears to be the case here where you agreed the adviser would be paid by the commission on the policy to cover their fee. If you dont like that, then you could always have paid the fee.

The monthly payments were very high (double what we're paying now)

Thats not grounds for mis-sale. Indeed, it sounds more like you have reduced the cover as the difference in premiums for like for like is not usually anywhere near double. Gut reaction to that is that you have gone from a guaranteed premium to a renewable or reviewable one or that you have left out critical illness cover.

could we turn to the Finacial Ombudsman on the grounds that we were mis sold a policy that clearly weren't in our best interests.

You cannot complain to the FOS. You have to complain to the firm first. However, I dont see the firm or the FOS upholding the complaint for the reasons you have given.

1 - price has nothing to do with it. Retailers can choose what they retail their products for.
2 - Do you need life cover? Based on what you have said yes you do. So, no mis-sale there.