Do companies have an obligation to remind policy holders to review their policies ?

johnny_leeds

My parents are in their late 80's and they have asked me to look at their life assurance policies because they feel they paying out money for the sake of it.
Having trawled through their docs I feel they have not been very good at selecting the right policies but I also feel outraged that the Industry can allow them to get into their current position.

Briefly their situation is:-
Both parents are covered by Senior Plan whole of life policies. They have taken out 7 separate policies since the early 80's.
I have calculated that to date they have paid more than 300% in monthly premiums when comparing the amount they would receive in death benefit, and they continue to pay!

When I made enqiuries about surrender values the company told me that the policies always attracted a low surrender value because they were there purely to provide a death benefit and not a return on investment.
I have also discovered that these policies offer an option called 'Paid up Value' whereby the holder can stop paying their monthly premium but the policy remains open. Then at death the next of kin would receive a lower benefit ie the paid up value of the policy .

I recognise that my parents have not managed their policies well, but I feel agrieved that the company have not performed a health check and alerted their customer to revisit their requirements.

Has anyone any advice on how I can take this matter up ? or is this a lost cause?

Astaroth

Short of you saying your parents are no longer mentally fit to have made a contract and having medical evidence to agree with this finding (which would have legal ramifications for many other things) then you can simply deal with the situation as it is now rather than try to back date things - as far as I am aware.