Was I mis sold life insurance with my mortgage

Ballyannonbetty · 22 May 2018 at 7:31PM

while clearing out paperwork and cancelling DD that I don’t need anymore I cancelled a joint life insurance policy with Royal London as my husband said we’re covered through his company. I’d been paying £60 a month.
My husband has worked at the company since before we made our mortgage application but we don’t know why our advisor insisted we need it if we were already covered through my husband’s work? Would we have a claim for being mis sold life insurance?

Any advice appreciated

Thanks

M

[Deleted User] · 22 May 2018 at 9:46PM

Ballyannonbetty wrote: »

Would we have a claim for being mis sold life insurance?

You weren't mis-sold Life Insurance unless your husband's company provided the exact same (or better) cover and would have continued doing so even if your husband no longer worked for them.

Note that not every insurance policy was PPI and not even every PPI policy was mis-sold.

Nasqueron · 22 May 2018 at 10:26PM

Ballyannonbetty wrote: »

while clearing out paperwork and cancelling DD that I don!!!8217;t need anymore I cancelled a joint life insurance policy with Royal London as my husband said we!!!8217;re covered through his company. I!!!8217;d been paying £60 a month.
My husband has worked at the company since before we made our mortgage application but we don!!!8217;t know why our advisor insisted we need it if we were already covered through my husband!!!8217;s work? Would we have a claim for being mis sold life insurance?

Any advice appreciated

Thanks

M

Almost certainly there is a need for life insurance given there are 2 people on your mortgage and death in service benefits are not intended to replace life insurance (typically they will only payout a smaller fixed sum vs life insurance and almost certainly won't be enough to pay off the mortgage, all the bills and ensure you can survive without his income). There's also a fair chance the life insurance purchase was required to get free advice from the broker (you could pay a fee to avoid this) and he will have confirmed the company policy was insufficient cover - Dunstonh should be able to give you the full technical breakdown. As Money says above though, there is no guarantee your partner will continue to receive this cover - if he moves to a new job and they don't offer this any more or is made redundant and loses the benefit then you'd be stuffed.

Personally I'd have cancelled life insurance as the last resort of needing to save every penny as it could mean the difference between living comfortably in the event of tragedy and dealing with having to lose your home

dunstonh · 22 May 2018 at 11:04PM

but we don!!!8217;t know why our advisor insisted we need it if we were already covered through my husband!!!8217;s work?

Are you saying your husbands work provided mortgage life assurance? I have never come across that. I have seen death in service plenty of times but that is for short term loss of income and reduced pension benefits.

And are you also saying that you were on your husbands death in service? Again, that is not usual. It is usually only the employee. Not their spouse.

Would we have a claim for being mis sold life insurance?

Almost certainly not. Death in service has a purpose already. Whilst you could use it to cover a mortgage, it would leave you short in lost pension provision and loss of income. So, a life assurance policy would be needed there. So, the normal thing to do is disregard DIS (as that is for the other purposes) and then do a standalone mortgage term assurance.

Unless you have other life assurance plans, its likely that the Death in service is insufficient and you have left yourself short.

Was I mis sold life insurance with my mortgage

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