Mortgage Protection Policy

Aidan17

Hi , I took out a mortgage protection policy about twenty years ago, it was part of the conditions of getting my loan that I have this in place. It meant that if either me or my wife died, the other would receive enough to pay off the mortgage. Thankfully we never had to use this. We were fortunate in being able to pay off our mortgage about 9 years ago however I forgot all about the mortgage protection policy and continued to pay for that until recently when I cancelled it.
I paid about €3,300 in premiums over the past 9 years and have sought a refund from the Insurance company, but they are refusing to refund. I maintain they should have maintained contact with me to ensure the protection was still required and sufficient cover, by they disagree.
Anyone else have any similar problems and info so how was yours resolved?

Trish56

How was the life company to know you redeemed your mortgage? If you died in the last 9 years before you cancelled the life company would have paid out I presume you wouldn't have returned it advising your mortgage was paid off.

Totally your responsibility to cancel the policy.

They did maintain contact - they were taking money out of your account every month.

Practically they would probably have had to notify the bank when it was taken out but I think the only person responsible for letting them know the mortgage was cleared is you.

advertsfox

Trish is correct, I recently closed my mortgage and the bottom of our statement shows the following (i.e its your responsibility). I'm honestly a bit baffled how you let a direct debit continue for 9 years without reviewing it.

Aidan17

Trish56 wrote: »

How was the life company to know you redeemed your mortgage? If you died in the last 9 years before you cancelled the life company would have paid out I presume you wouldn't have returned it advising your mortgage was paid off.

Totally your responsibility to cancel the policy.

True, they would have paid out, but we may not have claimed because we had forgotten about it. My point is they should have to stay in regular contact, say annually, to check that the product they sold me is still suitable to my needs. My mortgage subsequently increased after I took it out and was eventually paid off early. Had they checked in with me annually it would have been great customer care.

Aidan17

[Deleted User] wrote: »

They did maintain contact - they were taking money out of your account every month.

Practically they would probably have had to notify the bank when it was taken out but I think the only person responsible for letting them know the mortgage was cleared is you.

They looked for money from my bank account every month, I would not call that keeping in touch. Banks have to send an statement annually to account holders with a balance of €10 or more, why should a mortgage protection provider not have to keep in contact with me to ensure what they sold me is still suitable to my needs.

Trish56

The policy was probably assigned to the lender so when you redeemed your mortgage they should have written to you to say the policy was no longer assigned.

Did you never question over 9 years as to why you were paying a direct debit to a Life Company as I review my finances every year in January. Also you more than likely took the policy out through your lender or a broker rather than directly with the Life Company.

Aidan17 wrote: »

They looked for money from my bank account every month, I would not call that keeping in touch. Banks have to send an statement annually to account holders with a balance of €10 or more, why should a mortgage protection provider not have to keep in contact with me to ensure what they sold me is still suitable to my needs.

Geuze

Aidan17 wrote: »

Hi , I took out a mortgage protection policy about twenty years ago, it was part of the conditions of getting my loan that I have this in place. It meant that if either me or my wife died, the other would receive enough to pay off the mortgage. Thankfully we never had to use this. We were fortunate in being able to pay off our mortgage about 9 years ago however I forgot all about the mortgage protection policy and continued to pay for that until recently when I cancelled it.
I paid about €3,300 in premiums over the past 9 years and have sought a refund from the Insurance company, but they are refusing to refund. I maintain they should have maintained contact with me to ensure the protection was still required and sufficient cover, by they disagree.
Anyone else have any similar problems and info so how was yours resolved?

I recently redeemed a mortgage early.

I knew that I no longer needed the MPP.

The lender returned the assigned MPP document, and advised me to let the insurer know that the MPP was no longer assigned to them.

We decided to keep the MPP as an extra, cheap life cover.


I don't think you have a case.

antix80

I can't understand how you didn't see the monthly payments leaving your bank account.
The life insurance company should also be sending you a yearly statement (Annual Benefit Statement)-Although if you changed your address or the policy owner was listed as the bank, then they might not be posted to you. Maybe you could use that angle, why didn't you get an ABS?

As for contacting you to ask does a policy still meet your needs... that's just daft. It would be up to you to meet a financial adviser to review your needs.

coylemj

OP, I can understand your grievance but the fact (as multiple have told you) is that they would have paid out during those 9 years if you or your spouse had died, whether you still had a mortgage or not. The policy does not depend on an outstanding balance, it pays a specific benefit, first to the lender but if the loan has been paid off or if there is a surplus after the loan is settled, the balance goes to your surviving spouse or your estate.

So while you never had a claim, there was a life policy with a death benefit in existence for those nine years and you have no case for a refund.

vkus6mt3y8zg2q

Work in the industry, OP dont even bother complaining to the Ombudsman, they dont side with the consumer in cases like this. Responsibility is with you to cancel a policy if you feel you no longer need the cover

Aidan17

Trish56 wrote: »

The policy was probably assigned to the lender so when you redeemed your mortgage they should have written to you to say the policy was no longer assigned.

Did you never question over 9 years as to why you were paying a direct debit to a Life Company as I review my finances every year in January. Also you more than likely took the policy out through your lender or a broker rather than directly with the Life Company.

It was a relatively small amount each month and I do not go through my bank statement in such detail, obviously I should have and will check what direct debits and standing orders are in place.

Aidan17

antix80 wrote: »

I can't understand how you didn't see the monthly payments leaving your bank account.
The life insurance company should also be sending you a yearly statement (Annual Benefit Statement)-Although if you changed your address or the policy owner was listed as the bank, then they might not be posted to you. Maybe you could use that angle, why didn't you get an ABS?

As for contacting you to ask does a policy still meet your needs... that's just daft. It would be up to you to meet a financial adviser to review your needs.

Never moved address and never received a ABS. Think I will just have to suck it up. Thanks