Standard Life Assurance Policy with Halifax Repayment Mortgage Question

[Bazza]

We were sold a 25 year Standard Life Decreasing Term Life Assurance policy / Mortgage Protection Plan on our first property / mortgage in 1990.

It was also a condition according to the company representative who we had the meeting with.

We have moved twice since then and mortgage amounts increased (with same lender) but we continued to pay the same monthly premium.

Should the original policy been amended / updated to coincide with increased borrowing / coverage ?

Thank-you

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

bump :tinysmile_twink_t2:

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

We were sold a 25 year Standard Life Decreasing Term Life Assurance policy / Mortgage Protection Plan on our first property / mortgage in 1990.

It was also a condition according to the company representative who we had the meeting with.

We have moved twice since then and mortgage amounts increased (with same lender) but we continued to pay the same monthly premium.

Should the original policy been amended / updated to coincide with increased borrowing / coverage ?

Thank-you

Contacted Standard Life in writing and received a reply stating that even if another property was purchased (increased value) the existing policy would still be valid ?

Does anyone know if this is correct ? It doesn't seem right to me as the Sum Insured would have increased another £65,000 at the time of new purchase.

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

Just an up-date, complaint rejected twice by SL.

Spoke to fos and completed an on-line questionaire. Received letter today from FOS advising complaint reference and that it will probably take up to a year for an adjudicator to start work on my case

Thank-you

[des8]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

I've just come across this thread.
Are you saying that in 1990 you had a repayment mortgage for say £100.000 and for your families' protection you effected a decreasing term life insurance over say 25 years.
You have since taken out new repayment mortgages. Your latest is for £165, 000 over a new 25 year period.
If that is correct, your standard life policy still offers some protection, but not for the whole amount, nor the full period of your latest mortgage. To that extent what Standard life advised you is correct :the policy is still valid, but is now insufficient to give you full protection.

I suspect the original mortgage company rep who sold you that policy was on a commission, as, whilst advisable, these policies policies aren't usually mandatory for repayment mortgages. (or at least they weren't, but times change!)

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

I've just come across this thread.
Are you saying that in 1990 you had a repayment mortgage for say £100.000 and for your families' protection you effected a decreasing term life insurance over say 25 years.
You have since taken out new repayment mortgages. Your latest is for £165, 000 over a new 25 year period.
If that is correct, your standard life policy still offers some protection, but not for the whole amount, nor the full period of your latest mortgage. To that extent what Standard life advised you is correct :the policy is still valid, but is now insufficient to give you full protection.

I suspect the original mortgage company rep who sold you that policy was on a commission, as, whilst advisable, these policies policies aren't usually mandatory for repayment mortgages. (or at least they weren't, but times change!)

That's correct Des and have noted your comments.

As you stated I am sure the mortgage company rep has a lot to answer to, as he insisted that the policy was needed, whether it be an endowement or repayment mortgage.

I have also submitted a complaint to them and now awaiting their response.

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

That's correct Des and have noted your comments.

As you stated I am sure the mortgage company rep has a lot to answer to, as he insisted that the policy was needed, whether it be an endowement or repayment mortgage.

I have also submitted a complaint to them and now awaiting their response.

Well I got the attached from FOS adjudicator today rejecting the complaint.

On post information previously submitted on forums, I was sort of expecting it. On reviewing contents of letter is there any chance of replying with something that may at least get them to review again or obtaining any other details ?

Thanks for looking

[des8]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

Sorry to say Bazza, I can't see the adjudicator changing his mind.
Unfortunately you can't prove the original rep said the policy was mandatory, and at the time it probably was a reasonable buy.
Although it is not a requirement for lenders to review your life cover when you change your borrowing, IMO it is good practice for them to suggest you review it.
But then I'm old fashioned.

[Bazza]

Re: Standard Life Assurance Policy with Halifax Repayment Mortgage Question

Sorry to say Bazza, I can't see the adjudicator changing his mind.
Unfortunately you can't prove the original rep said the policy was mandatory, and at the time it probably was a reasonable buy.
Although it is not a requirement for lenders to review your life cover when you change your borrowing, IMO it is good practice for them to suggest you review it.
But then I'm old fashioned.

Thanks des and I did think that after reading the adjudicators response but we can both remember being referred and being told that the policy was needed in order for it to be accepted and just sign here where the 'x's' are. He even later wrote 'None' in the part of the application concerning company benefits ?that

I may just respond further to what he has stated as I have nothing to lose and also follow-up with the lender regarding my previous enquiries.

Cheers