life insurance

[ballysnod]

Hi

My husband and I took out mortgage life insurance back in 2003. At the time we were told that we must take out the life insurance to get the mortage. We pay £60 per month for this. Our bank is the First Trust and it was their Financial adviser that told us this. We are both self employed and our business account is with the same back.
The insurance is with the Norwich Union. Have we been mis sold this policy?

Any advice wouls be helpful

Laura

[maroondevo52]

Hello and Welcome, Laura.

Sorry I can't help you with your question, but I'll move this thread to the appropriate Forum, hopefully you'll get some good advice in there.

Regards.

Scott.

[gaz2954]

was your adviser independent or not ? Im an adviser myself , it is advisable to get cover for life critical illness income protection etc but it all depends have you got the best have you got the cheapest etc For most loans etc they can suggest you take they cant insist but at the end of the day it depends what you can prove and whether their paperwork is up to scratch etc most people would be stupid to take on a commitment without a fallback situation which these types of policy are but it all depends if he was independent linked to norwich in some way ie through panel or tied agent etc regards gaz

[pygmalion]

This is conditional selling and is illegal. You are not allowed to sell life insurance as a condition of the sale of the mortgage

[gaz2954]

It is adviseable to have life assurance but they cant insist on it and anyone can shop around to get the best or cheapest cover available regards Gaz

[bobbyh99]

Originally Posted by ballysnod

Hi

My husband and I took out mortgage life insurance back in 2003. At the time we were told that we must take out the life insurance to get the mortage. We pay £60 per month for this. Our bank is the First Trust and it was their Financial adviser that told us this. We are both self employed and our business account is with the same back.
The insurance is with the Norwich Union. Have we been mis sold this policy?

Any advice wouls be helpful

Laura

Like Gaz2954 says, they can't insist you have any life cover, but is advisable to have it to cover the outstanding mortgage once you die. Life cover is a good benefit to have!! if you can afford it. If you don't need it/want it, then stop paying the premiums and the policy will lapse.

As for mis-selling, you could argue that they did by insisting you have it to get the mortgage but personally I would keep the policy going (if you can afford the £60 per month) or perhaps shop around for a cheaper policy!

Bobbyh

[gaz2954]

Or contact a reputable Independent Financial Adviser to see if they can get same policy or better / cheaper ....I am an I.F.A ha ha but not necessarily touting for business though if it comes ......

[Lula]

you are perfectly within your rights to shop around, find another Life insurance policy and then cancel the other one, you can get it for far cheaper than £60 per month.

[gaz2954]

If its £60 pm may be it includes Critical illness cover too and or Income Protection as well so really you need a like for like comparison also it may have been loaded for medical reasons only you will know that but I agree you can shop around but whats the cheapest may not be the same or the best .Pm me if you want some quotes and Ill ask a few questions and get you some figures but dont cancel and then get a new policy like my colleague says get a new one ready to start before doing anything with the other . Regards Gaz

[gaz2954]

ps by the way there is nothing wrong with Norwich Union I do use them regularly regards G

[bobbyh99]

Originally Posted by Lula

you can get it for far cheaper than £60 per month.

This does depend on a number of things, like whether you smoke, size of benefit, medical history etc etc.