Mortgage Repayment Protection Policy Closure

gillian3

Hi. I've had a Mortgage Repayment Protection Policy for 20 years. I've been a good customer and never missed a payment. I've just been told that the insurer is going to close my policy because they want to 'simplify their insurance range'. Are they allowed to do this?

Hoenir

Of course they are. In the same way you aren't obliged to keep the policy running. 

dunstonh

Are they allowed to do this?

Yes.  

Its not a surprise.    Most providers have pulled out and there are very few reassurers interested now.     MPPI was actually one of the few good types of PPI but it became tainted.   Much the same as the endowment tax wrapper was killed off because of reputation despite certain types of endowments being a suitable option.

DullGreyGuy

gillian3 said:

Hi. I've had a Mortgage Repayment Protection Policy for 20 years. I've been a good customer and never missed a payment. I've just been told that the insurer is going to close my policy because they want to 'simplify their insurance range'. Are they allowed to do this?

ASU is a short term policy so normal rules apply with prices changing at renewal, either party being able to cancel etc. It became toxic because of the PPI scandal, the name it used to be sold under. A few still offer ASU products, though those doing direct advertising now call it income protection (which confusingly PHI also uses) but many have pulled out.