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Paymentshield mppi

15 replies 2.2K views
Hi, i bought mppi with paymentshield after i was told by my mortgage company i needed to. I had paymentshield recomended through a broker. I also already had critical illness insurance cover with coop. Ii wanted this company also as i am a carer and this was covered in the policy. In Jun 18 i was made redundant after 20?years and my company filled all details for Paymentshield for when i left. As my husbands illness was worse and the caring of my husband , my son & my mother had recently gone into a residential, the toil of caring had affected my health. I therefore chose to recover and concentrate for a while when redundant. Long storyshort. They refused yo pay my mppi. Reason - i either didnt sign on and claim jsa( i wouldnt have recieved payment anyway due to redundancy money, or claim on carers- wouldnt pay that either as i didnt leave work to care but was made redundant! My company asked why i had mppi as i had 6 mnths sick at work and similar holiday plus life insurance and i also had my mortgage decreasing illness cover. So did i really need this mppi. ?Please advise. Thank you.
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  • MoneyineptitudeMoneyineptitude Forumite
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    . They refused yo pay my mppi. Reason - i
    didnt sign on and claim jsa
    It's a condition of the insurance that you do so, regardless of the fact that you would not have received Job Seeker's Allowance.

    You certainly cannot argue the policy was mis-sold solely on that basis, I'm afraid. You posted about this back in July.

    Payment Shield is a well regarded insurance still retailed today.
  • dunstonhdunstonh Forumite
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    I also already had critical illness insurance cover with coop.

    Which doesnt overlap with MPPI in any way.
    I therefore chose to recover and concentrate for a while when redundant. Long storyshort. They refused yo pay my mppi. Reason - i either didnt sign on and claim jsa( i wouldnt have recieved payment anyway due to redundancy money, or claim on carers- wouldnt pay that either as i didnt leave work to care but was made redundant!

    That all sounds totally correct and normal. The FOS are quite happy with the requirement that you must sign on. Otherwise you are not unemployed. You are choosing not to work.
    My company asked why i had mppi as i had 6 mnths sick at work and similar holiday plus life insurance and i also had my mortgage decreasing illness cover.

    Life assurance doesnt overlap with MPPI in any way. And you were made redundant. So, clearly there was a financial need.

    Doesn't appear to be any issues here. Paymentshield is a high-quality provider. You had a financial need and it didnt overlap with any other plans you had. So, sale seems justified.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • LABMANLABMAN Forumite
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    Redundancy payment money does not affect contribution based JSA.
  • i have paid over 20 years. I was told by mortgage supplier to have mppi so i asked a broker toy advise. My workplace paid 6 months sick and same annual leave so only last few years colleages asking why im paying this. Yes it would have been useful if made redundant but alas that isn’t happening either? I had carers cover as at that time cared for my son with mental health illness . So i was covered for redundancy, unemployment and as a carer. How did i make myself jobless when i was made redundant, i had struggled working and caring previously, so along with my ill health decided to concentrate caring for my now 3 members of family. I could not sign on as my redundancy was too much to get jsa, i claimed esa sick for a while but am no longer, but living on carers allowance and a mortgage noone can pay for. I dont see how you think this is a simple cut & dry case and glad my ombudsman is trying to help.
  • BermoniaBermonia Forumite
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    The ombudsman is not there to ‘help’, they are there to assess the merits of your complaint - this will be focused on the point of sale and not events that occurred later.

    Nothing you have said makes it sounds as tho this policy was mos-sold to you, you were recommend a policy which you duly took, your sick pay is irrelevant as would not cover your mortgage (your most important financial commitment) on a long term basis.

    Also as I understand it you chose not to return to work... why do you think the insurer should pay indefinitely whilst you chose not to work, that would be true madness - hence the requirement of all policies that you must be looking for work.
  • dunstonhdunstonh Forumite
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    could not sign on as my redundancy was too much to get jsa,

    You can sign on. Signing on is not just about JSA. You also get NI credit. Plus, it qualifies you to claim on the MPPI policy.
    and glad my ombudsman is trying to help.

    I can't see how the ombudsman can help. Paymentshield only retail via intermediaries. Insurance regulation of intermediaries started in 2005. You say you bought this 20 years ago. So, this makes it pre-regulation.

    Expectation here is that the ombudsman, once they realise it is not a bank sold product, will tell you that they cannot help you as it was bought before January 2005 and they are not allowed to look into it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Ok yes, maybe you need to work to claim but it also covers you as a carer wich i have been for manny years and they will not pay my mortgage as i ‘did not leave to become a carer’ even though my work place have proof of me asking them about cutting hours and even leaving to be able to care x3?
  • dunstonhdunstonh Forumite
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    None of that really matters. It was sold 20 years ago. Long before regulation. The FOS do not have the remit to look at it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I am talking now about payymy morgage since redundancy., which they are not doing. You keep saying i choose not to work but they wouldnt pay me jsa if i chose to look for work and would find it diffyunlike my previous employment, which made hours flexible for appointments etc. . Also i was covered as a carer but this is not covered as previously mentioned. So living off £68 carers allowance and no mortgade help!
  • MoneyineptitudeMoneyineptitude Forumite
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    So living off £68 carers allowance and no mortgade help!
    Unfortunately, your current circumstances mean the insurance appears to be of of no use to you (although you can certainly sign on as unemployed without claiming JSA). However, these were not your circumstances when you first bought the policy two decades back and so that unfortunately means that you have no complaint of mis-selling. In addition, the insurance was not sold by a financial institution or individual regulated prior to 2005 so "your" Ombudsman cannot adjudicate here.
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