Does life cover qualify as PPI?

bgoold

At the time of taking out a repayment mortgage I was told I needed to take out a life cover policy to provide cover in the event of illness, unemployment. I have since complained to my mortgage provider that I was mis-sold this policy. They have responded and said that life cover isn't PPI. I am trying to work out if it is worth my while taking my complaint to the ombudsman. Does anyone have a view on whether mis-selling of life cover is claimable under PPI?

Browntoa

Life cover is life insurance, most mortgages insist on it

It's not ppi

antrobus

bgoold wrote: »

At the time of taking out a repayment mortgage I was told I needed to take out a life cover policy to provide cover in the event of illness, unemployment. I have since complained to my mortgage provider that I was mis-sold this policy. They have responded and said that life cover isn't PPI. I am trying to work out if it is worth my while taking my complaint to the ombudsman. Does anyone have a view on whether mis-selling of life cover is claimable under PPI?

As has already been pointed out, life insurance is not PPI.

You can, of course, complain that you were mis sold anything, including life insurance, but what makes you think it was mis sold?

BooJewels

To explain what others have said; PPI stands for Payment Protection Insurance.

This is insurance to protect your monthly repayments (on a mortgage, loan, credit card or other finance) should you either lose your job, or be off long term sick. It pays a set monthly amount (either to the finance company directly or to you) for a set maximum period of time - usually limited to 12 months or perhaps up to 2 years. When you return to work, it stops.

Life insurance is a lump sum paid to your beneficiaries to help pay off debts after your death.

I was told I needed to take out a life cover policy to provide cover in the event of illness, unemployment.

It sounds like you're a tad confused as to what cover you were sold - that sentence contradicts itself. Insurance to cover for sickness and unemployment may well be PPI, but this is not the same as life cover, as explained above. But mortgage policies often included both. But if the provider has already clarified that it wasn't PPI, then there doesn't seem to be any opportunity to take it further.

What do your policy documents say? The cover you had should be outlined very clearly.

Nasqueron

bgoold wrote: »

At the time of taking out a repayment mortgage I was told I needed to take out a life cover policy to provide cover in the event of illness, unemployment. I have since complained to my mortgage provider that I was mis-sold this policy. They have responded and said that life cover isn't PPI. I am trying to work out if it is worth my while taking my complaint to the ombudsman. Does anyone have a view on whether mis-selling of life cover is claimable under PPI?

The only times you would be miss-sold life insurance would be

1) You are immortal
2) You have no dependants that would be out of pocket if you die (no partner, kids)

Some old mortgages required life insurance, some policies bought through a broker required you to pay for life insurance so you don't need to pay a fee to them

It is logical if you complained about life insurance being PPI that it would be rejected and the FOS will side with the lender.

dunstonh

I was told I needed to take out a life cover policy to provide cover in the event of illness, unemployment.

You were missold on that basis. life cover doesn't provide cover in the event of illness or unemployment. So, if you have documentary evidence saying it does then you were missold. A bit like asking for a tin of beans and getting a loaf of bread instead.

Or perhaps you just made it up to put your complaint in.

I am trying to work out if it is worth my while taking my complaint to the ombudsman.

Pointless doing that. As a complaint about PPI when you dont have PPI is silly. The FOS have no ability to magic life cover into a different product.

Does anyone have a view on whether mis-selling of life cover is claimable under PPI?

No views necessary. its a position of fact. Life assurance is not PPI. Nor is house insurance, car insurance, pet insurance or travel insurance. (just in case you were thinking of putting in complaints against other insurances you may have).