mis sold Life Insurance with mortgage?

[icelolly99]

Advice welcomed. In 2013 my husband and I changed our mortgage from part endowment/part repayment to complete repayment mortgage. As part of this process we were told we had to have Life Cover and so we signed up. My husband has now realised through discussion with work colleagues that this is really a duplicate policy as he has excellent Death in Service policy with his employer. We have just now cancelled his part of this policy (Scottish widows) but kept mine as I am currently unemployed. Do we have a good case for claiming this as a mis sold policy? We did not need it and at the time we were not asked about any protection we may have already had with our employers? TIA 🤔

It depends whether the policy was sold on an advised or none advised basis.

We were told we had to have it but weren't asked if we already had something in place.

was it an advised or non advised sale - your paperwork should tell you this. They may have a condition of the loan being that you have life cover but if you already have death in service then it's arguable that you already have cover. I have to say that personally I'd have a separate decreasing term assurance policy (it's relatively cheap) for the mortgage and keep the death in service as separate cover, it's not just your mortgage that needs protecting. Assuming the death in service is the only life cover your DH has, if he did die a fair chunk goes towards paying off the mortgage but if you are still unemployed you might find yourself short.

Thanks Loki, will dig out paperwork. It wasn't cheap either; the policy was costing us £140 a month..... 🙄

That won't just be life cover, it will have some critical illness on it too. (Life cover is cheap, so unless you've got >£1m I expect it's not as straightforward as that)

Yes the sum assured was a very high amount or you have health issues that wasn't just life cover. I suspect as dontcallme has said it was also critical illness cover - which is actually more important in my view.

Your husbands like covert is with his job if he leaves you have no cover. Nobody ever feels they are over insured if their partner dies. Be fortunate you had good advice at the time. To cancel is foolhardy

If it did at critical illness you were foolish to cancel

That can’t be life insurance. DH and I started our policy in our 40s and it’s just over £30 a month. There must be more to it. And we both have death in service. It’s not the same thing I feel, as the cover with work is only when you are employed. What if you are made redundant? Also you need more than just covering the mortgage?

We haven’t got critical illness as we figure we can survive with one salary if we don’t pay childcare.