Missold critical illness

Threedoghouse

Hello my husband and myself took out a critical illness policy with the Woolwich building society @30 years ago. At the time my husband was self employed therefore it was more difficult to get a mortgage. We had to provide the Woolwich building society with 6 months of receipts for personal items bought to show we had disposable income and would be able to repay the monthly payments. We were also told we had to take a critical illness policy for both of us or the mortgage would be declined. Is this classed as missold ? We paid in for 25 years and had no lump sum at the end. 

Emmia

Threedoghouse said:

Hello my husband and myself took out a critical illness policy with the Woolwich building society @30 years ago. At the time my husband was self employed therefore it was more difficult to get a mortgage. We had to provide the Woolwich building society with 6 months of receipts for personal items bought to show we had disposable income and would be able to repay the monthly payments. We were also told we had to take a critical illness policy for both of us or the mortgage would be declined. Is this classed as missold ? We paid in for 25 years and had no lump sum at the end. 

Did the policy have a lump sum associated?

Normally you pay the premiums, and this provides cover if the worst happens - your "luck" counteracts others "misfortune" is the basic premise of insurance.

dunstonh

We were also told we had to take a critical illness policy for both of us or the mortgage would be declined. Is this classed as missold ?

Back in the 90s, it was not uncommon for a mortgage deal to require the purchase of insurance.  

However, whether that was the case or not, it will be impossible for you to prove your allegation after 30 years.    Plus, most people take out insurance and its sensible to do so.  So, you would be arguing against the norm.

We paid in for 25 years and had no lump sum at the end. 

Why do you think you would get anything back at the end?   That isn't how it works.

Plus, it also means they can time bar you from any complaint under the 3 and 6 year rule (you have to complain within 6 years of commencement or 3 years of being reasonably aware of an issue).  Not that they need to use that rule.

CliveOfIndia

Threedoghouse said:

We paid in for 25 years and had no lump sum at the end. 

That sounds correct.  The policy will only pay out in the event that you are diagnosed with a specified "critical illness".  Just like ordinary house insurance or car insurance, if you're lucky enough not to need to claim then you get nothing back.

And, as noted by the previous poster, it was very commen back then for a mortgage lender to insist upon you having insurance in place.  That's not a case of mis-selling - it was made clear to you that having the insurance was a condition of the mortgage offer, and you were free to choose whether or not to accept the offer and take out the insurance.

sheramber

Do you get a pay out at the end of the year if you haven’t claimed on your house insurance or your car  insurance?

Critical illness cover pays out if you develop a critical illness and cannot work. It makes up for the loss of income. 

If you are fortunate to not develop a critical illness then no pay out is due.