Other Lump sum Critical illness payment made to Mortgage holder

G

GMD

Registered User
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Hi There,
Long time viewer, infrequent poster so hope I have posted in the right forum.
A close relation recently had a serious stroke, following submission of the appropriate documents etc, the insurance company with whom critical illness cover was taken has agreed to pay the lump sum,
However
When queried as to why the cheque hadn't arrived, was informed by the insurance company that the policy was actually linked to the mortgage and so lodged to that bank account(who have gladly accepted it)
Whilst my relation had life cover for their mortgage with the same insurance company, they were quite sure that their critical illness cover was also linked to the Mortgage. (Hope to see the policy document tomorrow)
Any direction on how to approach this would be greatly appreciated
GMD
 
Yes, the Bank are not entitled to this money. If the borrowers repayments are on line the Bank has to return the money to the customer. Tell your friend to contact the Bank immediately & have the funds released to him/her. In the event of the Bank refusing, contact a solicitor.
 
Are they two totally separate policies? If not and a combined life and critical illness policy which is assigned to the bank would it not then be the norm that it would go towards the mortgage? Just asking, thought that was the case.
 
Realised I never updated on this situation, following some exchange by letter the Bank finally transferred the Money to my relations account.Thanks for above input, GMD
 
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