mis-sold insurance

michellep45

hi
not sure if we have a case but can you be mis-sold insurance?
last yr we took out insurances with natwest as we wanted them all in one place...we took out income protection as my husband is self employed £58
per month to cover £792.00 mortage...(husband only covered)
we have found out that hubby needs op so rung income protection to see how to go about it they informed me that we have to wait 13 weeks till any payout!!!!!!!!!!! we are very very sure that if this would have been explained theres no way we would have agreed to this ... yes i do realise that we should have read it properly but there was so much going on and soo much paperwork for everything else we did rely on the advise of the advisor
any feed back please
thanks

glider3560

If they didn't tell you otherwise, then you haven't been mis-sold. If they didn't say anything about payout timescales, then what is in the policy document will stand.

McKneff

You say that you wouldnt have agreed to go through with it. So would you not have got yourself any cover at all?

I have not seen any Payment Protection that kicks in straightaway so you are actually better off than the alternative ie no cover at all.

dunstonh

13 weeks is not uncommon on a PHI policy. Its a balance between premium affordability and level of cover. Even if you went for best possible it would be 30 days. The premium would probably have been 30-50% higher than you were paying.

we did rely on the advise of the advisor

Who doenst appear to have done much wrong. At least they recommended a PHI and not PPI.

The suitability report will tell you the timescales. The personal illustration will tell your the timescales and the factfind will record your affordability.

BTW, this is a moneysaving site. What are you doing here if you are using a bank for your insurances? Thats the most expensive distribution channel. Never buy your financial products from a bank.

McKneff

So now whats to do.

Say to yourself, thats the way it is so i have to deal with it. At least we have some financial protection. Put a full stop to all the stressing about it and get up and get on with it. I am not unsympathetic, just trying to get you to move on positively. Hope the surgery goes okay and good luck

dunstonh

I will just add that if you were to insure yourself for all the important things fully you wouldnt have much left to live on. So, everyone compromises in different areas to take out what they can for the amount they are willing to pay. You would have told the adviser your budget and the recommendation would reflect that. There is no point the adviser coming out with a recommendation that costs you three times what you said you were willing to pay. So, the cover gets compromised. Usually you would expect a paragraph in the suitability report saying that the cover was limited by the amount you were willing to pay.