PPI on a Zurich Mortgage Cover plan?

picklednut

Hi

I've found the documents for my decreasing mortgage cover plan through Zurich and notice on the back as an optional benefit there is a payment protection benefit of £XX per month. I notice myself and my husband have different levels and wonder whether we have been an additional premium for this? Would this constitute mis-selling of PPI? We only needed Critical and Life Cover for our mortgage and assumed that was what the premium was for but now its making me think part of the monthly premium included the cost of this additional optional extra of payment protection benefit and wondered if we could claim this back?

[Deleted User]

Unlikely. It sounds as if you bought a multi part policy.

SonOf

Would this constitute mis-selling of PPI?

No as it is not PPI.

Nearlyold

If you had payment protection benefit of £XX per month then there would be an additional premium to pay for the cover the benefit provides.

"Payment Protection Benefit" as an option on these Zurich plans is not PPI, there is no redundancy cover and rather than paying the benefit for 12 months or so in the event of incapacity preventing you from working, the benefit can potentially be paid for the remaining term the plan has to run - its a form of "Permanent Health Insurance".

The benefit levels for you and your husband would more than likely be different if your salary levels were different as there is a statutory maximum that can be claimed - typically 60% of your pre incapacity earnings.

PHI is a very difficult benefit to miss sell as the overwhelming majority of customers will have a clear need for it. Why do you believe it was unsuitable for you and your husband?