AIG insurance - double payments

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
4 replies 472 views
JamesBroJamesBro Forumite
94 Posts
Seventh Anniversary 10 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
Hi there.

I took out a mortgage through L&C in 2017 and remortgaged through them again this year.

Through L&C, I also took out a life insurance policy with AIG in 2017. When I remortgaged, I took out a new policy with AIG. Naively, I simply thought this would just replace the existing policy I had with them.

It did not.

Instead, I had been paying for two almost identical policies for months before realising that I was paying twice for the same thing, effectively. I was "double paying" for months, paying in total £200+ more than I should have.

I searched back through emails and there was a very subtle note from L&C on a document saying it was my responsibility to cancel any existing cover.

I called AIG seeing if, given that I'm a current policy holder and the money is effectively bonus money for them, if they could kindly agree to a refund. They wouldn't. Neither would L&C.

Both are of course right, given that it was my responsibility.

But, as I am obviously naive about this, shouldn't L&C have made it a lot clearer that I needed to do this? Surely other people fall into the same traps? I'm sure on MSE there are many more astute and observant people than me, and that I am to blame here, but - to be honest - this year is crazy. I have a young child and could only look so much into documents when they were sent to me. But I had countless chats with L&C over the phone about the policy.

Why wouldn't they just make it clear that I was going to be paying double?

Where on earth does the bonus money go to AIG? A Christmas party?

Do I have any leg to stand on or am I just an idiot for going months overpaying? *Opens self up for ridicule*


  • sal_IIIsal_III Forumite
    2K Posts
    1,000 Posts Second Anniversary
    You had two life insurance policies with AIG and if an insurance event had occurred, you would have got payouts from both. The money didn't go for AIG x-mas party or black ops budget.

    Fairly sure that L&C would have had in writing and/or in a recorded phone conversation advised you on checking if you already have cover and whether you want to cancel it or not. You didn't.

    You are unlikely to have a leg to stand on.
  • JamesBroJamesBro Forumite
    94 Posts
    Seventh Anniversary 10 Posts Combo Breaker
    OK, as I assumed. Thanks.

    Can I then please ask - do I need life insurance? Is £65 a month expensive for life insurance given we're in our 30s and without any medical problems? I presume this forum/thread is OK to ask this question.

    It seems as though it's a monthly outgoing I could cut down on.
  • Ben8282Ben8282
    4.8K Posts
    1,000 Posts Combo Breaker Newshound!
    JamesBro wrote: »
    Can I then please ask - do I need life insurance? I

    This is somnething onbly you can answer.
    If one of you were to die suddenly, would the remaining partner be able to cope with the mortage payments, life in general (from a financial point of view) without the life insurance payout?
    Do you have children?
  • NearlyoldNearlyold Forumite
    1.8K Posts
    Sixth Anniversary 1,000 Posts Combo Breaker
    Cancelling Life Cover is always the responsibility of the policy holder. The insurer would never cancel it without a specific instruction from you (other than for non payment).

    Most adults with a mortgage and a young child would need some form of life cover, no recently bereaved widow/widower with a child and mortgage to pay has ever complained their deceased partner had too much life cover.
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