Life BOI Life "whole of life" insurance - worth it?

ClubMan said:
It's also a mandatory requirement for a PPR mortgage with limited exceptions.
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True but I think it was all very casual at the time. We said we'd arrange our own and that was that as far as I can remember. Celtic Tiger in full roar at the time maybe?
 
getting_on said:
True but I think it was all very casual at the time. We said we'd arrange our own and that was that as far as I can remember. Celtic Tiger in full roar at the time maybe?
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PPR mortgage protection life insurance has been mandatory by law since 1995. Before that I think that it was effectively mandatory by policy on the part of lenders.

Consumer Credit Act, 1995, Section 126

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.
www.irishstatutebook.ie
But borrowers were always free to shop around and were never tied to their mortgage lender for such insurance.
 
ClubMan said:
But borrowers were always free to shop around and were never tied to their mortgage lender for such insurance.
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In the UK in the 90s we did the same and we had to provide proof of the policy's existence which IIRC was what surprised me about that not being an issue here. Maybe an oversight on their part at a time when they were probably mad busy issuing loans. Not everything goes by the book always
 
Twiggy24 said:
We got our BOI insurance in 2006, we were never offered more than a quote on one type of mortgage protection insurance. We ended up with a Whole of Life policy not knowing there was any other options, nor were we told that the bank only provides their own policies and that brokers offer quotes from several companies. It was and still is a very expensive option that the price went from €185 pm to €522pm after 20 years. We had signed for no indexation but then was charged for indexation.
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Someone only offering a whole of life policy is wrong. Gather all your paperwork and start a complaint process immediately and be prepared to go to the ombudsman about this. This will cost you tens of thousands by being missold this type of policy. mortgage protection plans are relatively cheap and guaranteed for the term. Your plan is reviewed and will only get more expensive as you get older and become a higher risk of them having to pay out on your life.
 
Thank you for your reply @Steven Barrett. I finally have a fll submission written out going through the whole process and years afterwards. I was advised by the Central Bank of Ireland that I submit a complaint to BOI then to the Ombudsman. "The Central Bank of Ireland (the Central Bank) is currently conducting a thematic review of certain business administration processes in the domestic life insurance market. This review is part of our ongoing supervisory engagement in this area. Consumers do not need to take any action at this time. Firms will be required to contact affected customers directly".
Thanks again for your reply as it confirms to me that what happened to us is wrong.
 
Twiggy24 said:
Thank you for your reply @Steven Barrett. I finally have a fll submission written out going through the whole process and years afterwards. I was advised by the Central Bank of Ireland that I submit a complaint to BOI then to the Ombudsman.
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That's how it works. You make a formal complaint to the service provider first. If they don't deal with the issue to your satisfaction then you get a final response letter. At that stage you can take it to the FSPO if you choose to do so.
www.fspo.ie

Can I complain? | Financial Services and Pensions Ombudsman

FSPO is an independent, fair and impartial service that helps resolve complaints against regulated financial service providers and pension providers.
www.fspo.ie
What's an "fll submission"? "Full"? "FOI"? Something else?
 
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