? Reclaim mis sold mortgage repayment insurance
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Biomekanik
Posts: 3 Newbie
Hi forum.
I took out a mortgage in 2002 through an independent financial advisor. He informed us that MRI was compulsory and so arranged a few illustrations. He knew we were both NHS workers with generous sickness and redundancy benefits but we chose a MRI which included own occupation benefit. It since transpired that the mortgage with another company didn't stipulate compulsory MRI. We signed a form saying we were happy with the insurance but didn't realise it wasn't actually compulsory. The policy is still active and we still pay £61 per month for both of us. Do we have grounds to reclaim on the basis we were told we needed a policy where our occupations were adequate?
I took out a mortgage in 2002 through an independent financial advisor. He informed us that MRI was compulsory and so arranged a few illustrations. He knew we were both NHS workers with generous sickness and redundancy benefits but we chose a MRI which included own occupation benefit. It since transpired that the mortgage with another company didn't stipulate compulsory MRI. We signed a form saying we were happy with the insurance but didn't realise it wasn't actually compulsory. The policy is still active and we still pay £61 per month for both of us. Do we have grounds to reclaim on the basis we were told we needed a policy where our occupations were adequate?
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He knew we were both NHS workers with generous sickness and redundancy benefits but we chose a MRI which included own occupation benefit.
That sounds more like PHI than PPI. PPi doenst have an "own occupation" benefit but the good type of PHI does. Much better than "any occupation".Do we have grounds to reclaim on the basis we were told we needed a policy where our occupations were adequate?
No.
1 - insurance wasnt regulated until 14 Jan 2005. you bought in 2002.
2 - What you describe sounds more like PHI than PPI.
3 - PHI is designed to kick in when employer benefits end. Plus, PHI is not PPI.
4 - If it is PHI, then your workplace benefits are not sufficient.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.0 -
Thank you. Guess I can stop worrying about it and carry on paying. An I ask what PHI stands for please?0
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PHI is permanent health insurance. It is the best form of income protection. Although there are some pretty useless budget options available along with very comprehensive ones and in between.
Own occupation is considered best because it means if you cannot carry out your occupation then they pay out. Whereas any occupation means it is far harder to claim on the policy.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.0 -
Thank you. I'll put it to bed then. Despite it not being actually necessary, I haven't been sold a dud.0
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Biomekanik wrote: »Thank you. I'll put it to bed then. Despite it not being actually necessary, I haven't been sold a dud.
Do remember that the broker could require you to buy insurance products through them in order to give you free advice rather than pay a fee so that could be what they meant by compulsory rather than it being a lender requirement0
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