L&G - Mortgage Decreasing Term Assurance

m_duck · 20 May 2015 at 6:24PM

I have been going through old documentation and found my original mortgage paperwork. I bought my first house in 2005 and used a company through the estate agents I was using to buy the house, the Mortgage Advice Bureau, who sold Legal and General insurances. The insurances I took out were Accident, Sickness and Unemployment, Home Insurance and Mortgage Decreasing Term Assurance. I can understand the first 2 (the home insurance was a condition of the mortgage) however the Mortgage Decreasing Term Assurance now does not make sense.

I was single with no dependents and the only named person on the mortgage. In the event of my death, there was no one to benefit from the insurance and I also had 2 x salary life assurance through my company.

I ended all 3 policies in November 2012 when I moved house and used an independent advisor for a new mortgage and insurance policies.

Do people think I would have a case against Legal and General for the advice given at the time to take the Mortgage Decreasing Term Assurance ? The premium was £15.39 per month which included Terminal Illness cover, but not critical illness cover.

Thanks for any advice.

dunstonh · 20 May 2015 at 7:44PM

I was single with no dependents and the only named person on the mortgage.

You have a case if you were living alone (but not if you lived with another). Although at a recent compliance meeting, we were told the FOS have started rejecting complaints on the basis of mortgage protection given the long term nature of the debt and that you will likely enter a relationship later.

m_duck · 20 May 2015 at 7:52PM

Thanks for the reply. I was living alone at the time, happy days ......

It was when I met my partner that we both sold our properties and moved in together with a joint mortgage and amended insurance. I might send them a letter and see what response I get.

-taff · 20 May 2015 at 8:10PM

I live alone and have life insurance but it's a bolt on for critical illness cover. Was your just standard life insurance or something else as well?

m_duck · 20 May 2015 at 9:06PM

I'm sitting here reading through the information I was given at the time and I still find it confusing.

"Was your just standard life insurance or something else as well?"

Reading the documentation, the cover letter from the 'Mortgage Advice Bureau' refers to it as 'Life Assurance, but the next page (stapled together) is from Legal and General where it is referred to as 'Mortgage Decreasing Term Assurance'.

Looking at the Key Facts, Protection Choices Plan, from Legal and General on Page 1, entitled 'Protection Choices' it never mentions Decreasing Term Assurance, but does reference, Life Cover and Critical Illness.

On Page 2, 'Risk Factors', it has a section on 'Decreasing Mortgage Cover', and has a separate section on 'Life Cover and Critical Illness Cover'. And from what I can see for the rest of the document it never mentions 'Decreasing Mortgage Cover', and references 'Life Cover' - not Life Assurance.

So in answer to your question, with all the documentation I have and being 10 years wiser I still don't understand what cover I took out !!!

dunstonh · 20 May 2015 at 10:48PM

The generic information will cover all options whether you have them or not. Only the policy schedule or illustration will tell you what you actually have.

magpiecottage · 22 May 2015 at 7:09AM

Decreasing (goes down - as your mortgage goes down so you need less) term (your mortgage runs for a set time).

If it did not include critical illness there is an argument about suitability. I think there is an argument that a single person did not need pure life cover.

m_duck · 22 May 2015 at 9:03AM

Hi,

Thanks for the responses. I emailed Legal and General yesterday asking for the correct address and department I could write to. I had email last night saying they have assigned someone to discuss this with me but they were out of the office for a few days (I'm assuming half term) and would contact me when they were back in the office.

Thanks.

Insider101 · 23 May 2015 at 12:38PM

m_duck wrote: »

Hi,

Thanks for the responses. I emailed Legal and General yesterday asking for the correct address and department I could write to. I had email last night saying they have assigned someone to discuss this with me but they were out of the office for a few days (I'm assuming half term) and would contact me when they were back in the office.

Thanks.

I think you've missed one key point here. This product appears to have been sold to you by Mortgage Advice Bureau. If you therefore have any issues with it, you need to direct them to MAB not Legal & General.

L&G - Mortgage Decreasing Term Assurance

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