£200 per month for life insurance can't be right?

Kumamon

My husband and I are paying £203 per month for a policy with Aviva "Life Insurance+" which was set up by our mortgage broker last year for a mortgage of (£225,000). Prior to that I was paying £75 when the mortgage was just in my name. This was sold over the phone by a very pushy broker.

I need some help understanding everything, as this seems a massive amount.

There are two things I'd like to do:

1) get cheaper insurance

2) complain about what I've been paying. It's been suggested that we may have been mis-sold this policy - this is based on life cover I get through work which might mean I didn't need this policy, and I wouldnt even be able to claim on it. But I don't know where to start with making a complaint. I've seen the Resolver service, and plan to use it - but would like some help in getting clear in my head what we've been paying for and if I have a strong argument.

In a nutshell: I'm in a mess. I want to fix it but don't understand what we're paying or where to go for help in understanding it. I'm hoping some stern questioning from forumites will get things straighter in my head.

Quentin

Kumamon wrote: »

,......... I'm hoping some stern questioning from forumites will get things straighter in my head.

If your husband died why wouldn't you be able to get paid?

Why did you allow yourself to be pushed over by someone on the phone?

(Take care over all the scammers who cold call you nowadays eg. Because you owe income tax)

stripeyfox

£200 might not be that expensive, depends on your age and health. Might be an idea to shop around for comparative quotes first to determine how much more expensive it is

Kumamon

Thanks for your replies - I really appreciate it.

Quentin - I don't understand your first question- can you explain? Your second question is easier: because I was stressed and anxious at the time, confused by the process, and too nice. I can't change how I was then, but I can do better now.

StripeyFox, we're both early forties, good health, non-smokers.

dunstonh

2) complain about what I've been paying.

That is not something that you would expect to be able to complain about with success. You are told the premium at point of sale and have the opportunity to say yes or no. If you say yes and proceed then you cant go and complain later.

It's been suggested that we may have been mis-sold this policy - this is based on life cover I get through work which might mean I didn't need this policy,

Death is service through work is not meant to be used in conjunction with a mortgage. You would not expect it to be considered for mortgage protection. Its primary purpose is to provide for short term loss of income and reduced pension benefits.

So, no. That is not a missale reason.

and I wouldnt even be able to claim on it.

You seem to be getting some duff info. You can have as much life assurance as you like (caveats apply if you suddenly go silly amounts). You can claim on the policy.

I suspect you have life assurance and Critical illness cover. Your premium certainly suggests that.

Quentin

Kumamon wrote: »

Quentin - I don't understand your first question- can you explain?

See your OP

You say you may not be able to make a claim

That only happens if you die first doesn't it??

Kumamon

Thanks both of you - your questions are really helpful as they are clarifying for me where the confusion is in my head, and therefore where I am confusing you!

I think it might be partly a confusion between critical illness cover and life insurance. I was told by an IFA (admittedly at an initial meeting, without him looking at all the documentation) that it was possible that I'd been mis-sold if I had cover through my work (e.g. I get six months full pay and then six months half pay if off long term sick). He said that in that case I might not even be able to claim on the policy. Quentin, that's what I was referring to - being critically ill, not dying! He was going to look into it for me, but I haven't heard from him in 6 weeks.

I'm worried we are paying for stuff we don't need. If I haven't been mis-sold, ok fine - at least I might be able to get it cheaper and cut costs. How best to go about this? I'd like some good advice from somewhere as every fricking time I try to get professional advice things seem to go badly wrong.

wjr4

The first thing you need to do is get your Aviva policy document and find out exactly what you have. What is the sum assured? Does it pay on life only, life AND critical illness or life OR earlier critical illness? Are there any exclusions (things you are not covered for)?

Kumamon

Thanks wjr4 - it is life and critical illness. Total permanent disability is also covered. We've also got "upgraded critical illness benefit" . Cover type: Decreasing. Cover amount £256,500.00

Not covered for children (we don't have any, and won't be having any), and I'm not covered for depression / anxiety as I have been diagnosed with this in the past,

dunstonh

I think it might be partly a confusion between critical illness cover and life insurance. I was told by an IFA (admittedly at an initial meeting, without him looking at all the documentation) that it was possible that I'd been mis-sold if I had cover through my work (e.g. I get six months full pay and then six months half pay if off long term sick). He said that in that case I might not even be able to claim on the policy.

That is very disappointing. They shouldn't be saying that and any IFA should know this. If they were referring to PPI, then I could understand it. But not life assurance. 12months sick pay has no overlap with life assurance or CIC. Existing DIS has no issue with life assurance or CIC.

and I'm not covered for depression / anxiety as I have been diagnosed with this in the past,

That would have an impact on premiums potentially.

Weighty1

If it's Aviva's upgraded life and critical illness benefit then you've got a top quality product. However, Aviva's pricing isn't particularly good recently hence the price you are paying. So you can a) switch to a cheaper policy and not be covered in as quite a comprehensive manner or b) stick with what you have knowing it's an excellent policy.

It would be worthwhile checking if you have Global Treatment added onto the plan. This is a fantastic benefit but would cost £4/month for each of you, if included.

There are other alternatives as well, for examples some other providers have upgraded critical illness plans which are very similar to Aviva, but maybe not *quite* as comprehensive.