I’ve just been reviewing some of my mum’s finances and discovered that when she remortgaged the house in 2005 for £30000, she was told she also needed life insurance to go with it.
She was sold an 18 year decreasing term life insurance policy with critical illness cover, beginning at £30000. She was 45 when she bought it and with no health issues. The cost was £34.30 per month.
This to me seems extremely high for the level of cover and I’m concerned she was missold the policy. Firstly, she was told she needed it which wasn’t true. Secondly, me and my sister were practically adults by this point and no longer dependents, and thirdly there is no information on how the advisor she used was paid. The total cost will be £7408, which surely would have been better spent on reducing the mortgage term? In the last 3 years of the policy the payment is substantially less than the total premiums paid.
Did anyone else take a similar policy at the same time? How much did you pay? Is there any precedent for making a complaint about mortgage life insurance policies being mis-sold and under what conditions they are considered mis-sold?
Thanks in advance