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Business loan / mortgage life insurance
M1chelleM1
Posts: 2 Newbie
Hi,
When we were buying our business , a farm in 1995 Clydesdale Bank made us take out life insurance we have tried to claim this back but have been told that we had a choice, borrow the money and take out life insurance or don't borrow the money, fair point, but should we not have been allowed to make it our decision as the business assets would more than cover the borrowings rather than being forced into this.
When we were buying our business , a farm in 1995 Clydesdale Bank made us take out life insurance we have tried to claim this back but have been told that we had a choice, borrow the money and take out life insurance or don't borrow the money, fair point, but should we not have been allowed to make it our decision as the business assets would more than cover the borrowings rather than being forced into this.
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Comments
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If the condition of the loan was that you take out the insurance then logically it cannot be miss-sold - you either agreed and took the insurance or went to another provider.
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Life assurance as a condition of borrowing is allowed still today. Although nowadays, you only tend to see it on commercial borrowing. If it was required, it cannot be missold.
As you say "we" that suggests a couple. So, life assurance would be common sense even if it was not mandatory at that time. If it was left to the bank to repossess when one of you died, where would the other live?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.0
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