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    • spencer999
    • By spencer999 6th Dec 17, 1:03 PM
    • 42Posts
    • 6Thanks
    spencer999
    critical illness/income protection plan
    • #1
    • 6th Dec 17, 1:03 PM
    critical illness/income protection plan 6th Dec 17 at 1:03 PM
    Found an ancient "non-qualifying income protection plan", taken out with Allied Dunbar in 1989! Total contributions about £1500. I've just got the paperwork from Zurich who took them over.

    Taken out at the same time as a mortgage. It was referred to as "critical illness" and the cover was for just under £10k pa, with a 3 month deferment!

    Sorry to be daft but do you reckon this qualifies for a claim?

    EDIT - I meant a claim for mis-selling
    Last edited by spencer999; 06-12-2017 at 2:51 PM.
Page 1
    • societys child
    • By societys child 6th Dec 17, 2:09 PM
    • 4,895 Posts
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    societys child
    • #2
    • 6th Dec 17, 2:09 PM
    • #2
    • 6th Dec 17, 2:09 PM
    A claim, have you suffered a claimable event or are you considering making a complaint?

    • dunstonh
    • By dunstonh 6th Dec 17, 2:16 PM
    • 89,943 Posts
    • 56,647 Thanks
    dunstonh
    • #3
    • 6th Dec 17, 2:16 PM
    • #3
    • 6th Dec 17, 2:16 PM
    Sorry to be daft but do you reckon this qualifies for a claim?
    if the policies are no longer in force then you cannot claim on them. You can only make a claim if they are still providing cover.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • spencer999
    • By spencer999 6th Dec 17, 2:22 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    • #4
    • 6th Dec 17, 2:22 PM
    • #4
    • 6th Dec 17, 2:22 PM
    I've heard people chattering about old critical illness and income protection plans, and whether compo is due because of mis-selling.

    Something about very high commissions and the cover being worthless anyway.

    I should have worded my post differently. I didn't want to claim on the policy, I wondered if it had been mis-sold in the first place

    SOZ
    Last edited by spencer999; 06-12-2017 at 2:27 PM.
    • spencer999
    • By spencer999 6th Dec 17, 2:45 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    • #5
    • 6th Dec 17, 2:45 PM
    • #5
    • 6th Dec 17, 2:45 PM
    a complaint, sorry societyschild, I worded it badly. Wondered if it might have been mis-sold
    • dunstonh
    • By dunstonh 6th Dec 17, 2:46 PM
    • 89,943 Posts
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    dunstonh
    • #6
    • 6th Dec 17, 2:46 PM
    • #6
    • 6th Dec 17, 2:46 PM
    I've heard people chattering about old critical illness and income protection plans, and whether compo is due because of mis-selling.
    Where?

    The complaints stats don't indicate any issue with either of those. Both have very low levels of complaints. Not unexpected as PHI (income protection) is considered one of the most important insurances someone can have and CIC has better claims rates than life assurance.

    Something about very high commissions and the cover being worthless anyway.
    You are mixing up products as neither of those apply to the two types of plan you mention. The commissions issue applies to PPI.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • spencer999
    • By spencer999 6th Dec 17, 3:02 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    • #7
    • 6th Dec 17, 3:02 PM
    • #7
    • 6th Dec 17, 3:02 PM
    I thought PPI WAS income protection?
    • spencer999
    • By spencer999 6th Dec 17, 3:04 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    • #8
    • 6th Dec 17, 3:04 PM
    • #8
    • 6th Dec 17, 3:04 PM
    I have a feeling it was sold in conjunction with a mortgage. I bought my first house at the same time
    • Deewm76
    • By Deewm76 6th Dec 17, 3:46 PM
    • 9 Posts
    • 4 Thanks
    Deewm76
    • #9
    • 6th Dec 17, 3:46 PM
    • #9
    • 6th Dec 17, 3:46 PM
    Critical illness cover is term assurance designed to pay off your Mortgage/other loans/liabilities due to you not being able to work because of a critical illness (ie. Cancer) It’s paid in a lump sum and is recommended alongside a new mortgage.
    • spencer999
    • By spencer999 6th Dec 17, 4:01 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    thanks Deewm. I need to find out if what I've been told informally is true, that Allied Dunbar mis-sold the cover to go with mortgages ie there was excessive commission or the cover was very poor or not applicable to me in some way
    • dunstonh
    • By dunstonh 6th Dec 17, 4:05 PM
    • 89,943 Posts
    • 56,647 Thanks
    dunstonh
    I thought PPI WAS income protection?
    Originally posted by spencer999
    There are two types of PPI that could be classed as short term income protection but most types are payment protection (the PP in PPI). None of the types of PPI fall under the same classification of real income protection, which is a long term insurance issued by life assurance companies. PPI is short term insurance issued by general insurance companies. Comes under different classifications in the FCA rulebook too.

    You can still buy PPI today. Although only in the two types that were considered good.

    However, the best form of income protection is PHI (permanent Health insurance). Very different from PPI.
    I need to find out if what I've been told informally is true, that Allied Dunbar mis-sold the cover to go with mortgages ie there was excessive commission or the cover was very poor or not applicable to me in some way
    Already answered on this thread. There is no such thing as excessive commission in respect of that product type.

    The cover was not very poor. It is one of the most important and best types of insurance going. And it was totally applicable to you.
    Last edited by dunstonh; 06-12-2017 at 4:08 PM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Deewm76
    • By Deewm76 6th Dec 17, 5:23 PM
    • 9 Posts
    • 4 Thanks
    Deewm76
    I worked in financial services for many years and these policy's are genially very good. I cannot think of a reason why it would be miss-sold unless your advisor completed your health questions for you knowing you had complex pre exsisting medical conditions (which would have resulted is non payment of a claim)
    or a policy which would have been declined by the underwriters before the policy commenced.
    • Nearlyold
    • By Nearlyold 6th Dec 17, 6:19 PM
    • 985 Posts
    • 817 Thanks
    Nearlyold
    Allied Dunbar plans may not have been the cheapest but there was nothing wrong with the cover.

    The Allied Dunbar Income Protection Plan was a unit-linked life assurance plan, which in return for regular contributions for the duration of the plan, was designed to provide a regular income after a deferred period if your earnings stopped due to illness or disability and you are unable to work. (As far as I can recall the life cover was a token amount)

    In your case it would have provided an income of £10,000 pa after a 3 month deferment period - that was very good cover, its important to realise that if you had suffered an illness such that you were unable to work, the income is paid until you return to work or the expiry of the plan (this was often set to retirement age or perhaps in your case mortgage expiry). Its not just payment for 12 months as is the case with PPI its potentially £10,000 pa for the rest of your working life - a potentially massive pay out.

    Why is everyone so desperate to have been miss sold something?
    Last edited by Nearlyold; 06-12-2017 at 6:23 PM.
    • -taff
    • By -taff 6th Dec 17, 6:31 PM
    • 7,188 Posts
    • 5,173 Thanks
    -taff
    Not got any savings
    • spencer999
    • By spencer999 6th Dec 17, 6:41 PM
    • 42 Posts
    • 6 Thanks
    spencer999
    was just a shot in the dark. The paperwork arrived with my pension update which was a pleasant surprise as it's £42k more than I thought. Hadn't touched it in years. So mustn't grumble
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