Policies linked to mortgages


I have paid off/transferred the mortgage/loan with the bank. May I terminate the insurance policy linked to the mortgage/loan and have a refund of the premium paid?

Yes, if you paid a single premium, in the event of early repayment or transfer of the mortgage or loan, companies must refund the part of the premium relating to the remaining period of the insurance policy. As an alternative you can ask for the continuation of the insurance coverage in favour of the new appointed beneficiary until the expiry date of the insurance contract.

I have taken out a policy against the loss of employment, sold in combination with the mortgage. I have checked the contract more carefully and I have realized that I am not covered, since my employment relationship is excluded from the policy. Was it not up to the undertaking to check this situation? What can I do now?

When underwriting the policy, undertakings must check the fulfilment of the insurability requirements and the adequacy of the product with respect to the customer’s needs. Whenever products have been sold to customers who were not insurable when they applied for the insurance cover, undertakings must proceed with the total refund of premiums and costs paid. For more information, see our letter to the market dated 26 August 2015 “Policies linked to loans (PPI Payment Protection Insurance). Measures protecting consumers".
You can, therefore, submit a request to the undertaking to ask for the cancellation of the policy and the consequent repayment of the premium.

Last update

15 November 2018