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    • Stevie_72
    • By Stevie_72 26th Apr 18, 2:25 PM
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    Stevie_72
    Mis-Sold Life Insurance
    • #1
    • 26th Apr 18, 2:25 PM
    Mis-Sold Life Insurance 26th Apr 18 at 2:25 PM
    Hi - could it be possible I have been mis-sold life insurance ? What I mean by that is - is this possible in the way that PPI has been mis-sold ?

    I took out life insurance because I thought I had to, my employer has death in service cover which far exceeds the life insurance cover. I have had this for roughly 13 years, been with the same employer for 20.

    Was this life cover unnecessary - meaning it was mis-sold ?
Page 1
    • dunstonh
    • By dunstonh 26th Apr 18, 2:31 PM
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    dunstonh
    • #2
    • 26th Apr 18, 2:31 PM
    • #2
    • 26th Apr 18, 2:31 PM
    could it be possible I have been mis-sold life insurance ?
    Theoretically yes. Statistically likely, no. There are very few complaints about life assurance sales.
    What I mean by that is - is this possible in the way that PPI has been mis-sold ?
    Anything can be missold potentially. However, life assurance is a very simple product to understand and suffers none of the product issues that PPI does. So, the reasons are unlikely to be similar.

    I took out life insurance because I thought I had to, my employer has death in service cover which far exceeds the life insurance cover. I have had this for roughly 13 years, been with the same employer for 20.
    Most death in service is no more than 4 times pensionable salary. 2x being the most common. The purpose of death in service is to cover loss of short term income and perhaps some of the lost pension benefits.

    Was this life cover unnecessary - meaning it was mis-sold ?
    You havent told us what the life assurance was for.

    Typically, if you have financial dependents (i.e. spouse/partner/children) the crude ballpark figure for the amount of life assurance you need is around 20x income PLUS the amount of any debts (such as mortgage) minus any existing provision. So, lets say you had 4x DIS. You would still need 16x income plus debts.

    So, its very unlikely your DIS was anywhere near suitable by itself.
    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.
    • Stevie_72
    • By Stevie_72 26th Apr 18, 2:43 PM
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    Stevie_72
    • #3
    • 26th Apr 18, 2:43 PM
    • #3
    • 26th Apr 18, 2:43 PM
    Many thanks for the reply. I took out the life insurance to cover the remainder of my mortgage only - which was roughly 70k, the sum assured was 80k. This was joint cover with my wife. We both work for the same large financial company so our DIS cover easily exceeded 70k. It was at that time as you suggest 4 x pensionable salary.
    • dunstonh
    • By dunstonh 26th Apr 18, 2:51 PM
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    dunstonh
    • #4
    • 26th Apr 18, 2:51 PM
    • #4
    • 26th Apr 18, 2:51 PM
    So, its clear you didnt have enough life assurance/DIS and that the recommendation was suitable. Indeed, if you dont have any more life assuarnce today, then its likely you still have a shortfall.
    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.
    • Stevie_72
    • By Stevie_72 26th Apr 18, 2:55 PM
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    Stevie_72
    • #5
    • 26th Apr 18, 2:55 PM
    • #5
    • 26th Apr 18, 2:55 PM
    My mortgage had 70k remaining, the life cover was for 80k my DIS at that time 13 years ago would have been 140k. This life policy was to cover the mortgage only.
    • jonesMUFCforever
    • By jonesMUFCforever 26th Apr 18, 3:35 PM
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    jonesMUFCforever
    • #6
    • 26th Apr 18, 3:35 PM
    • #6
    • 26th Apr 18, 3:35 PM
    What would have happened if you had changed jobs - your new employer might not have offered the same death benefits.
    What goes around - comes around
    give lots and you will always receive lots
    • dunstonh
    • By dunstonh 26th Apr 18, 3:48 PM
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    dunstonh
    • #7
    • 26th Apr 18, 3:48 PM
    • #7
    • 26th Apr 18, 3:48 PM
    My mortgage had 70k remaining, the life cover was for 80k my DIS at that time 13 years ago would have been 140k. This life policy was to cover the mortgage only.
    Originally posted by Stevie_72
    DIS is not meant for mortgage cover. Its purpose is to cover short term loss of income and reduced pension benefits.

    its normal and correct to disregard it for mortgages. However, lets say you personally decide to allocate it to the mortgage. That leaves you with a shortfall in the other areas. So, one way or the other, you have a shortfall now and you have a shortfall then.
    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.
    • pigieon widow
    • By pigieon widow 9th Jul 18, 2:20 PM
    • 1 Posts
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    pigieon widow
    • #8
    • 9th Jul 18, 2:20 PM
    • #8
    • 9th Jul 18, 2:20 PM
    Hi, i have been with paymentshield for many years, taken through a broker when my mortgage supplier daid i needed one. I took payment shield as a carer in case something happened. After 20 years at 61 i have been made redundant, so as already an unpaid carer for 3 family members i decided to recuperate and concentrate on my caring roles and becoming stress free ( almost) for a while) . Paymentshield tell me they cannot pay my mortgage as i left due to redundancy and not as a carer. My workplace are annoyed as i have asked many times if it would be better to leave due to so many commitments but kept trying to accomodste me. My sister tells me that as my company paid 6 months sick leave anyway so i didnt really need to have Paymenshield. Is this rivht and could i claim my mppi back?
    Thank you for your help.
    • dunstonh
    • By dunstonh 9th Jul 18, 2:53 PM
    • 93,368 Posts
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    dunstonh
    • #9
    • 9th Jul 18, 2:53 PM
    • #9
    • 9th Jul 18, 2:53 PM
    Is this rivht and could i claim my mppi back?
    Thank you for your help.
    Paymentshield never offered life assurance (the subject of this thread).
    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.
    • foxy-stoat
    • By foxy-stoat 9th Jul 18, 4:03 PM
    • 2,186 Posts
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    foxy-stoat
    My mortgage had 70k remaining, the life cover was for 80k my DIS at that time 13 years ago would have been 140k. This life policy was to cover the mortgage only.
    Originally posted by Stevie_72
    Naaa you havent mis sold or mis bought. If the mortgage balance was 30K when you died then the balance would of gone to your Estate.

    Nice try though, if you can think of anything else that could of been mis sold post back.
    • Moneyineptitude
    • By Moneyineptitude 9th Jul 18, 4:28 PM
    • 20,607 Posts
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    Moneyineptitude
    if you can think of anything else that could of been mis sold post back.
    Originally posted by foxy-stoat
    The poster you responded to made his post (back in April) and hasn't logged on since..
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