Mis sold life & critical illness insurance

WhiteSquirrel

Over 25 years ago I was sold life & critical illness cover with a Halifax mortgage and despite cancelling the original mortgage with them when I moved and changed mortgage providers I have been paying monthly for this cover ever since. 

Only in recent years have I realised that I’m not sure it was the best thing for me to have taken out at the time as I had no dependants or anyone else living with me although I guess the critical illness cover may have been useful if I had been unlucky to get something nasty at such a young age (it was my first property) it was done on a reducing value basis with no payout at the end and with just a couple of years left I am wondering whether to stop the policy now as I wouldn’t get very much anyway.

 I have looked at all the paperwork and it does seem to explain fully what the policy is and its constraints however I can’t help feeling that I was missold this on the basis that I didn’t really need it with no dependants etc. Also when I payed off the mortgage I don’t recall being advised to stop it but not sure it was mortgage linked anyway. Would I have any grounds for them to review whether it was missold or as it’s life insurance don’t have a chance and they will just say it was buyers choice.

dunstonh

Over 25 years ago I was sold life & critical illness cover with a Halifax mortgage and despite cancelling the original mortgage with them when I moved and changed mortgage providers I have been paying monthly for this cover ever since. 

It's very difficult to be missold life assurance (plus bolt-ons).   It's a very straightforward transaction.   And 25 years is a very long time to leave it before making a complaint.   Timescale to complain is an issue.

In respect of you "cancelling the original mortgage", that is irrelevant.  The life assurance and the mortgage are not directly linked.  Many people retain their insurances whilst they move their mortgage between lenders.   Others will keep their insurances in place when the mortgage is repaid.  Its not the for the lender or insurer to dictate what you do.  It is for you and/or your adviser to decide what you should do.

Only in recent years have I realised that I’m not sure it was the best thing for me to have taken out at the time as I had no dependants or anyone else living with me although I guess the critical illness cover may have been useful if I had been unlucky to get something nasty at such a young age (it was my first property) it was done on a reducing value basis with no payout at the end and with just a couple of years left I am wondering whether to stop the policy now as I wouldn’t get very much anyway.

In that case, you didn't have a financial need for life assurance but you did for critical illness cover.   However, the cost difference between CIC without life assurance and with it included is either nil or as close to nil as makes no difference.    So, its common sense to include it.

 I have looked at all the paperwork and it does seem to explain fully what the policy is and its constraints however I can’t help feeling that I was missold this on the basis that I didn’t really need it with no dependants etc. 

It doesn't sound missold because you did have a financial need for CIC.

. Also when I payed off the mortgage I don’t recall being advised to stop it but not sure it was mortgage linked anyway. 

Did you speak to an adviser at that time?  Only advisers can give advice.  Providers and lenders are not advisers.  They are not allowed to advise you unless you have a financial review.      Again, I refer to the my comments above.

 Would I have any grounds for them to review whether it was missold or as it’s life insurance don’t have a chance and they will just say it was buyers choice.

Nothing you have said indicates any wrongdoing, either missale or later.   Yes, it wouldn't have been the best option. An IFA or whole of market adviser/broker would have been better for you (lower cost and more product selection) but that is buyer choice.    In effect, you went into an Apple store and came out with an Apple phone.   You cannot complain that they didn't sell you an android phone.  They only retail their own products.   That was your buyer choice.

DullGreyGuy

WhiteSquirrel said:

Over 25 years ago I was sold life & critical illness cover with a Halifax mortgage and despite cancelling the original mortgage with them when I moved and changed mortgage providers I have been paying monthly for this cover ever since. 

Only in recent years have I realised that I’m not sure it was the best thing for me to have taken out at the time as I had no dependants or anyone else living with me although I guess the critical illness cover may have been useful if I had been unlucky to get something nasty at such a young age (it was my first property) it was done on a reducing value basis with no payout at the end and with just a couple of years left I am wondering whether to stop the policy now as I wouldn’t get very much anyway.

 I have looked at all the paperwork and it does seem to explain fully what the policy is and its constraints however I can’t help feeling that I was missold this on the basis that I didn’t really need it with no dependants etc. Also when I payed off the mortgage I don’t recall being advised to stop it but not sure it was mortgage linked anyway. Would I have any grounds for them to review whether it was missold or as it’s life insurance don’t have a chance and they will just say it was buyers choice.

CIC or CIC + Life rarely has any material price difference and as you admit you had a need for CIC it would make sense to have taken the (next to) free life cover at the same time no matter if you had dependents or not at that time in 99% of cases.

The insurance and the mortgage are independent even if bought at the same time, the CIC/Life pays out to you, your estate or a trust. It is up to you or your executors if you use the money to pay off the mortgage, remodel the house to cope with being in a wheelchair or go on a holiday. As a decreasing term it'll broadly have gone down inline with mortgage if you were paying the normal repayment and no hyper interest rates or large overpayments. 

It would be up to you to decide if it was appropriate to cancel this policy after you settled the mortgage and it presumably will have depending on if you bought another property with a mortgage, what medical conditions you've picked up since buying it etc... some will cancel and buy a new policy, some will keep the policy and buy a second policy to top up if they now have a larger mortgage or simply cancel and run the risk of no insurance. 

If you bought from Halifax then it would be a non-advised sale and as such it would have been inappropriate for them to have made suggestions to you. There is a mountain of additional paperwork involved for advised sales and no Bank/Insurer does that but IFAs or some brokers do. 

Agree with the above, not miss-sold, you were just not good at keep your needs and policies under review with your changing circumstances.