Was this policy "mis-sold"
markwho66
Posts: 5 Forumite
Having lost my job in 2008 due to a company I'd joined closing, I was introduced to an Insurance broker whom I was told was a specialist in life and lost wages insurance.
The small company was basically a broker and his secretary but as he came recommended by a colleague I met him (he visited me at home) in all good faith.
I explained that I was looking for an insurance cover that would cover me if I lost my job as the gap in employment had led to me spending my life savings simply to stay above water in the 15 months I was out.
This was 2012 and the broker told me that due to the recent "credit crunch" job insurance was to be phased out and the only remaining policy he knew of was via the Prudential but that it was packaged as an "add on" to life insurance.
The sum insured was £35,000 plus if i lost my job there would be a year at £1250 a month. The cost was £88.00. He told me this was fixed "for the life of the policy or until you cancel it".
He visited several times whilst I decided and finally I signed up and began paying. Almost immediately the premium leaped from £88 a month to £105 a month and I contacted the broker who told me this was due to insurance tax. It went up again last year to £116.00 a month but I carried on having recently acquired a mortgage at a very attractive rate through another (online company)
Today was the 1st year anniversary of the ten year mortgage and the 2nd company contacted me to see how the wife and I were and would we like to look at a homeowner loan etc. I explained that I was annoyed that the other sum had gone up and I could not think about looking at finances this month having been hit with a £224 dental bill having broken a couple of teeth recently. The broker questioned the sum I was paying with the Pru and I said that I was stuck with it as it was the only remaining wage protection plan.
"WHO told you THAT???" was the question. When I explained the lady told me that at no time was this kind of insurance scarce and that a combined £50,000 policy for death plus a similar loss of earnings plan would be just over £75 a month via their insurers and that "They must have seen you coming!"
Was this company 2 trying to get me to swap (albeit for a better less costly plan) or was I duped. Im guessing the broker got a fee for me joining but I would like to know;
1) was there a curb on these kind of plans?
2) Would insurance premium rises since 2012 account for a £28 rise in payments?
3) If I have been mis sold what do i do?
I understand I should have done more due diligence
but when one sees a specialist one expects that as part of the service!
The small company was basically a broker and his secretary but as he came recommended by a colleague I met him (he visited me at home) in all good faith.
I explained that I was looking for an insurance cover that would cover me if I lost my job as the gap in employment had led to me spending my life savings simply to stay above water in the 15 months I was out.
This was 2012 and the broker told me that due to the recent "credit crunch" job insurance was to be phased out and the only remaining policy he knew of was via the Prudential but that it was packaged as an "add on" to life insurance.
The sum insured was £35,000 plus if i lost my job there would be a year at £1250 a month. The cost was £88.00. He told me this was fixed "for the life of the policy or until you cancel it".
He visited several times whilst I decided and finally I signed up and began paying. Almost immediately the premium leaped from £88 a month to £105 a month and I contacted the broker who told me this was due to insurance tax. It went up again last year to £116.00 a month but I carried on having recently acquired a mortgage at a very attractive rate through another (online company)
Today was the 1st year anniversary of the ten year mortgage and the 2nd company contacted me to see how the wife and I were and would we like to look at a homeowner loan etc. I explained that I was annoyed that the other sum had gone up and I could not think about looking at finances this month having been hit with a £224 dental bill having broken a couple of teeth recently. The broker questioned the sum I was paying with the Pru and I said that I was stuck with it as it was the only remaining wage protection plan.
"WHO told you THAT???" was the question. When I explained the lady told me that at no time was this kind of insurance scarce and that a combined £50,000 policy for death plus a similar loss of earnings plan would be just over £75 a month via their insurers and that "They must have seen you coming!"
Was this company 2 trying to get me to swap (albeit for a better less costly plan) or was I duped. Im guessing the broker got a fee for me joining but I would like to know;
1) was there a curb on these kind of plans?
2) Would insurance premium rises since 2012 account for a £28 rise in payments?
3) If I have been mis sold what do i do?
I understand I should have done more due diligence
but when one sees a specialist one expects that as part of the service!
0
Comments
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Doesn't sound at all mis-sold?0
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"WHO told you THAT???" was the question. When I explained the lady told me that at no time was this kind of insurance scarce and that a combined £50,000 policy for death plus a similar loss of earnings plan would be just over £75 a month via their insurers and that "They must have seen you coming!"
After the credit crunch, loads of insurers in the unemployment cover market pulled out. Some providers of it went under and had to be rescued. The market shrank massively at that point and very few providers were offering unemployment only cover. Since 2012/13, the market has grown a little bit it is still tiny compared to what it was before the credit crunch.
The lady you saw was possibly inexperienced or just telling slagging off the previous rep to make them look better (sadly happens too much). An experienced IFA would know the market as they are whole of market. An FA (not IFA) is tied to one or a limited number of providers and would not know the market. They would only know their own products.1) was there a curb on these kind of plans?
No. They are still allowed.2) Would insurance premium rises since 2012 account for a £28 rise in payments?
IPT was 6% when you purchased. It went up to 9.5% and then 10% last year and going to 12% in June this year.3) If I have been mis sold what do i do?
Nothing you have said suggests any missale.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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