Missold insurence.

Kath_H · 10 April 2018 at 1:40PM

Hi everyone
I won set if anyo e o the team can help?.
I took out an insurance policy with Scottish Provident in 2005 for what I thought was a policy to pay off my interest only mortgage. I called Scottish provident last week for a balance update as I was going to contact my mortgage company to switch to a repayment mortgage.
Scottish Provident said it was a life insurance and basically I have to die or get critically ill and I can not have a rebate of my parents because they don't do that.
I asked what I would get if I survived in till the policy end date. They said I would get nothing.
So basically I contacted the company who sold me the policy straight away. When I explained the situation to them and that I had put a complaint into Scottish Provident they said they don't have an office in my town anymore and the man who sold me the policy died the week before???
I need advice on anything I can do to get my money back so it can come of the balance of my mortgage.
P.S
I am 50 with a £78000 interest only mortgage.
Thanks
Kath H

Browntoa · 10 April 2018 at 1:53PM

It was a policy to pay off your mortgage if you died

It was probably a requirement of the mortgage

Whole life policies has no cash in value

You won't get a penny back

Nasqueron · 10 April 2018 at 1:55PM

A policy that covers life insurance and critical illness is not a policy that pays off your mortgage. You are alive and not ill, that is a good thing, but isn't a reason for a refund of this policy. Did you not read the documentation at the time?

dunstonh · 10 April 2018 at 2:43PM

I took out an insurance policy with Scottish Provident in 2005 for what I thought was a policy to pay off my interest only mortgage. I called Scottish provident last week for a balance update as I was going to contact my mortgage company to switch to a repayment mortgage.

You thought it was going to pay off your interest only mortgage? Not being funny but the premiums on endowment policies (what you seem to think it was) were usually 10-12 more than the premiums of a life assurance policy. Its not as if its a few pound difference. Its massively different.

I asked what I would get if I survived in till the policy end date. They said I would get nothing.

Which is how most insurances work.

I need advice on anything I can do to get my money back so it can come of the balance of my mortgage.

I see nothing in what you have said that gives any reason for them to refund the money. Having a life assurance to cover a mortgage is quite normal and common sense.

Your issue seems to be that you somehow managed to think that the life assurance policy was your repayment vehicle. However, its difficult to see how anyone can be to blame for that because nowhere would it have said anything in the documentation issued to give you that impression.

said they don't have an office in my town anymore and the man who sold me the policy died the week before???

Lets hope he had life assurance and his family will then be paid out on it. Which is what life assurance is for.

[Deleted User] · 10 April 2018 at 11:37PM

Kath_H wrote: »

I asked what I would get if I survived in till the policy end date. They said I would get nothing.

They are correct.

In the same way, if you take out car insurance you don't receive money back if you don't have an accident.

You really should have read (and re-read) the cover you had. You can't complain simply because you thought your insurance was something entirely different. I'm not even sure what you hoped it might actually be, certainly an Endowment policy would have been far far more expensive than the Life Insurance you actually bought.

Browntoa wrote: »

Whole life policies have no cash in value

You won't get a penny back

Indeed

Missold insurence.

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