Life insurance on mortgage

MinE

Hi folks, I wonder if you can help. I've read through lots of threads but can't work if this insurance was mis-sold..

As a first time buyer in 1991 I got a mortgage. I was told it was compulsory to take out Life Insurance. This would pay out if I died. I thought this was odd, questioned it, but told it was indeed compulsory.
The mortgage was with Bristol & West BS, the life insurance was with Eagle Star. I never received any contract or paperwork for the insurance, but paid a DDR every month till a few years ago when I cancelled it.

I was always puzzled that the insurance was compulsory. I had no spouse or dependents, so thought if I died the BS would have the flat to sell.

Would appreciate your thoughts on whether this could have been mis-selling, and if so, should I make a complaint to Eagle Star's successor (Zurich) or Bristol and West's (BoI)?
Thanks
Mary

[Deleted User]

Compulsory life insurance was often a feature of mortgage deals in the 1990's. This was all quite standard and the rules allowed it. If you had no documentation you could easily have requested a copy.
There is no valid complaint here...

MinE

Thank you Moneyinept...

SonOf

As a first time buyer in 1991 I got a mortgage. I was told it was compulsory to take out Life Insurance.

It almost certainly was compulsory to take life assurance in 1991. Most lenders abolished that need in the late 90s with a few stragglers into the early 2000s. Today you only tend to see it on commercial borrowing but there is the odd lender that still requires it.

I was always puzzled that the insurance was compulsory. I had no spouse or dependents, so thought if I died the BS would have the flat to sell.

It protected the lender more than it protected you.

Would appreciate your thoughts on whether this could have been mis-selling, and if so, should I make a complaint to Eagle Star's successor (Zurich) or Bristol and West's (BoI)?

No, its not a missale. If it is compulsory, it cannot be missold. Just confirming what Moneyineptitude is saying.

Old_Lifer

When you applied for the life policy, the proposal you submitted would have included your name and address.


A quotation would have been sent to you at that address.


The product details would have been sent to you at that address.


The acceptance would have been sent to you at that address


The policy would have been sent to you at that address.


And of course, a direct debit would have been sent to you at that address, which you seem to have completed and returned.


May I suggest that with the passage of time you may perhaps have have either lost or misplaced the documentation.

MinE

SonOf - thank you for confirmation.


Old Lifer - suggest what you like, but I have the file of all the original paperwork and there is nothing from Eagle Star. Apart from signing the DDR mandate, I never had any paperwork. I signed the mandate at the same meeting the advisor tried to 'persuade' me into an Endowment mortgage. I remember it very clearly, and that I never received any paperwork for something I always referred to as 'Death Insurance'.

SonOf

MinE wrote: »

SonOf - thank you for confirmation.


Old Lifer - suggest what you like, but I have the file of all the original paperwork and there is nothing from Eagle Star. Apart from signing the DDR mandate, I never had any paperwork. I signed the mandate at the same meeting the advisor tried to 'persuade' me into an Endowment mortgage. I remember it very clearly, and that I never received any paperwork for something I always referred to as 'Death Insurance'.

It was not uncommon in the past for the life assurance to be arranged early on Sometimes months before completion as things were slower back then. So, the address used would be the "old" address as you hadnt moved yet. Then you would move. However, the insurer was not always told the new address or they were given the new address after the start date. By which time, the documents were posted to the old address.

If you have a mail redirect, you would have got the documents. If you didnt. then you would not.

There are multiple documents as old lifer says. Some of which would have been given to you in your face to face meeting with the seller. For example, the initial quote. We also gave the reason why letter pre-sale at our firm.

So, I can understand old lifer being sceptical as some documents are point of sale and some are postal and multiple posts - not all in the same envelope. It's asking a lot to assume that you never got multiple lots of post and the hand provided quotes etc. If you actually did have a valid complaint, it is unlikely an adjudicator would believe you didn't get anything and would more likely believe that you have just forgotten over time or the file has been mislaid.

[Deleted User]

MinE wrote: »

I never had any paperwork.

As already explained, it really does not matter.

Any paperwork you may have needed (for a potential claim) was always available on demand throughout the life of the policy.

There is no valid complaint here...