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    • Kath H
    • By Kath H 10th Apr 18, 1:40 PM
    • 2Posts
    • 0Thanks
    Kath H
    Missold insurence.
    • #1
    • 10th Apr 18, 1:40 PM
    Missold insurence. 10th Apr 18 at 1:40 PM
    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
Page 1
    • Browntoa
    • By Browntoa 10th Apr 18, 1:53 PM
    • 33,560 Posts
    • 39,660 Thanks
    Browntoa
    • #2
    • 10th Apr 18, 1:53 PM
    • #2
    • 10th Apr 18, 1:53 PM
    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
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • Nasqueron
    • By Nasqueron 10th Apr 18, 1:55 PM
    • 5,501 Posts
    • 3,391 Thanks
    Nasqueron
    • #3
    • 10th Apr 18, 1:55 PM
    • #3
    • 10th Apr 18, 1:55 PM
    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
    • By dunstonh 10th Apr 18, 2:43 PM
    • 94,567 Posts
    • 62,550 Thanks
    dunstonh
    • #4
    • 10th Apr 18, 2:43 PM
    • #4
    • 10th Apr 18, 2:43 PM
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Moneyineptitude
    • By Moneyineptitude 10th Apr 18, 11:37 PM
    • 20,998 Posts
    • 11,768 Thanks
    Moneyineptitude
    • #5
    • 10th Apr 18, 11:37 PM
    • #5
    • 10th Apr 18, 11:37 PM
    I asked what I would get if I survived in till the policy end date. They said I would get nothing.
    Originally posted by Kath H
    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.

    Whole life policies have no cash in value

    You won't get a penny back
    Originally posted by Browntoa
    Indeed
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