Life Cover policy - is this PPI?

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Angela_S
Angela_S Posts: 2 Newbie
in Reclaim PPI & other insurance
Hi

I'm after advice regarding a Friends Provident (now Aviva) Life Cover policy I took out in 2007. I vividly remember being told that I needed insurance in order to get my mortgage approved but am not sure if this is classed as PPI. I've been in contact with Aviva who told me the policy was sold through an agent, Direct Life and Pension Services Ltd. Is it wishful thinking that this is classed as mis-sold PPI and I'm owed lots of money?! Would it be worth pursuing?

Thanks in advance for any help :)

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  • BooJewels
    BooJewels Posts: 2,863 Forumite
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    PPI stands for Payment Protection Insurance. This would take the form of a monthly payment to cover your mortgage payments for a period of time if you were unable to work due to illness, or lost your job.

    Life cover means there's a lump sum paid to your estate if you die, to pay off the mortgage.

    Some mortgage insurance packages might include both types, along with critical or terminal illness cover. If you had such a package, you might be able to make a valid complaint of mis-selling, but only the PPI aspect of it is covered, so any redress would only cover that portion of your premiums.

    You'd need to dig out your papers and see exactly what cover you did have.
  • Angela_S
    Angela_S Posts: 2 Newbie
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    Thanks for responding so quickly. I'll see what paperwork I can find, although it was so long ago I'm not sure if I'll have any!
  • BooJewels
    BooJewels Posts: 2,863 Forumite
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    2007 is merely a heart beat away - I've just been shredding papers for my father from the mid 1970s! :D
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    It is normal for people to take out life assurance to cover the mortgage. Mainly as they dont want the surviving partner/spouse and children to be kicked out of the house as they cannot repay the mortgage due to loss of income.

    As mentioned above, Life assurance is not PPI.

    Until around 2003, it was often complusory for life assurance to be a condition of borrowing. It still can be with certain type of mortgages but nowadays it is optional. That said, some mortgage brokers will require the purchase of insurance via them to give free mortgage advice. That model is allowed as long as the insurance is suitable.
    I've been in contact with Aviva who told me the policy was sold through an agent, Direct Life and Pension Services Ltd. Is it wishful thinking that this is classed as mis-sold PPI and I'm owed lots of money?

    Its not PPI. So, no point making a PPI complaint
    Also, its life assurance. So, unless you are single with no dependents/partner, its difficult to complain you didnt need it.

    Finally, it seems to have been arranged by a comparison company (that company is not an advice company). So, it would appear you chose to buy it rather than an adviser or clerk putting it in place under advice.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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