Mortgage Protection Policy - Switching Lender

[8451FD]

Took the day off to review finances and discovered a D/D in favour of one of the big Life Co's - but couldn't square the payment with any policies or details on file. We are good at keeping records. Rang them and here's the position.

Sept 2001 - took out the policy when arranging a top up mortgage with Bank 1.
The Policy was not in our name but in the name of the Bank and LifeCo have double checked this - we have no policy docs - nothing on file.
The D/D has been paid at all times up to date - approx 500 euro pa.

Sept 2003 - we took out new mortgage with Bank 2 cleared Bank 1.
New life policy in our joint names assigned to Bank 2 concidentally with same LifeCo.
This has been paid at all times also.

Mar 2006 - remortgaged - switching lender to Bank 3 and then new policy with new LifeCo. New lender doesnt require assign - just evidence of policy in place.
Recd Letter from Bank 2 Releasing assign.
Recd Letter from LifeCo advising release of assign - we cancelled policy and D/D

are we wasting time going after Bank 1 for a refund from 09/03 to date ??
i feel we are - we missed it - but its not straight foward the policy being in Bank 1 name - we never recd any correspondence from - LifeCo regarding it - Any thoughts??

 

[PM1234]

Sept 2001 - took out the policy when arranging a top up mortgage with Bank 1.
The Policy was not in our name but in the name of the Bank and LifeCo have double checked this - we have no policy docs - nothing on file.
The D/D has been paid at all times up to date - approx 500 euro pa.

Hi,

Don't fully understand this. If you took out a top up mortgage then it is just additional borrowing on an existing mortgage. You would have needed life assurance on the original mortgage (provided you had one) and then topped up if necessary. If you took a small top up and had indexation on your life policy, depending on the age of the policy it might have increased sufficiently enabling you to avoid increasing it. Alternatively if you took out the original life policy at a relatively young age the co. could possibly have given you a higher amount than was originally sought for the minimum premium.

If you took our an original life policy, you would have completed application forms including medical history etc. Did you meet with a broker/life co. to do this?

Unless its an admin error the life policy would have been in your name but the lender would hold an interest/assignment in the policy and their interest is noted by the life co.

I don't know why you took out new life policies each time? Unless you had basic mortgage protection and some life cos. treat them as inflexible products so you may have had to cancel the policy and take a new one each time?

I think regarding a refund, you need to establish if the cover was in place, would they have paid out? If they would then its unlikely you would get a refund.

 

[8451FD]

HI - THANKS A MILLION - it was a top up in 2001 and the Bank organised a new policy with existing LifeCo on basis of questionaire - no medical we're sure of that - the existing policy was cancelled but the new policy was(is) in banks name - we never recd policy docs or correspondence - this policy should have been cancelled in sept 2003 - when we switched lender.

we took out a new policy then because there was a top up involved then.Why we did it like that i dont know ! but that policy was in our names and assigned to the new bank.When we Switched lender again last year - that bank wrote to us releasing the assign and we could cancel the policy( - thats the way to do it!)

my point is that we have paid approx 2000 euro to date - for a policy that should have been cancelled (we didnt need 'extra' cover - we have additional policies anyway) - its our fault for not seeing it - except that we had no policy doc's or letters nothing on file.
Anytime we reviewed our life cover/Mortgage protection we did it from the file.
We didnt notice the D/Ds because - we have loads going out ssia's/car ins/house ins/savings and life policies.

i take your point about payout - you're right - i just feel that we have some case because of the way they set up the policy and wanted to get a few thoughts from the forum

fair play to anyone who has got this far - thanks again