Claim?

MammaS

I have a decreasing mortgage cover plan which is still running and I'm looking for some advice please.
This policy was sold to us back in 2004 when we moved house. The financial advisor at the time told us we needed this cover for the mortgage. And I don't seem to recall he offered us any other alternatives.
At that time both my husband and I had been with our employer for over 5 years so would be eligible for full sickness benefits along with redundancy.
This is a very expensive policy - currently at £73.63 but started off at £85.74 so although it's called 'decreasing' it is doing so very slowly!
Also this policy does not pay out for the first 6 months.
Which really is no use as i doubt the bank would let us off paying the mortgage for 6 months until this policy kicked in.
So I'm paying for a policy that is no use to us but it states on the paperwork that this plan has no cash in value.
What do you guys think I should do?

[Deleted User]

If you no longer need it, you could cancel it.

The advisor wouldn't have needed to offer alternative options.

dunstonh

This policy was sold to us back in 2004 when we moved house. The financial advisor at the time told us we needed this cover for the mortgage. And I don't seem to recall he offered us any other alternatives.

Most people in the UK with mortgages have a need for life assurance. Which is why most people buy it.

I am not sure why you think you should be offered alternatives.

At that time both my husband and I had been with our employer for over 5 years so would be eligible for full sickness benefits along with redundancy.

None of which makes any difference with life assurance.

Also this policy does not pay out for the first 6 months.

life assurance covers you on day one.

Judging by the size of the premium and you saying 6 months, I suspect its a multi-segment plan and you have income protection in there. That is the only product with a 6 month month deferment.

Which really is no use as i doubt the bank would let us off paying the mortgage for 6 months until this policy kicked in.

The deferment period is designed to tie in with employer benefits. If you are paid in full for the first 6 months, why wouldnt you pay the mortgage?

So I'm paying for a policy that is no use to us but it states on the paperwork that this plan has no cash in value.

Why is it no use to you? Nothing you have said suggests anything wrong.

Plus, its a good thing it has no cash in value. The old plans that obtained an investment value are woefully obsolete by modern standards and were much more expensive. Not sure why you would want one of those.

What do you guys think I should do?

Your subject thread is "claim?". Have you suffered a claimable event? Is one of the lives assured dead or suffered an illness? You dont say what part of the policy you are looking to claim on.

Or did you mean complain? If that, then nothing you have said suggest a complaint reason. It does appear your knowledge on what you have and why you have it could do with some improvement. You seem to think you are immortal and can never get ill. You may want to visit the insurance section and see the posts from people who have had payouts in those scenarios. Or the bankruptcy board or debt-free-wannabee sections where people didnt have insurance and are now suffering the consequences.