Income Protection Policy - what can I do?

rixster_2

When I first started work I was sold an Income Protection Policy at the same time as a private pension product by my bank.

I don't know why it has taken me this long to examine the situation (13 years later) but it has been making a great big hole in my savings as my wages aren't great.

I know Martin L has posted many bits of advice on here about reclaiming payment protection insurance but I am not sure if I would come into this category.

But I do think I was originally led to believe that it was an automatic accompaniment to the pension product. If I had refused then I would have saved myself somewhere in the region of £5,000 which would be very nice to have back!

I have now suspended the payments into the income protection but too late to stop August's.

When I was talking about this with a friend the other day I was kicking myself for not thinking about Incapacity Benefit if the circumstances warranted it - I've had very few days off work in my working life so it was an utterly needless policy in my view.

Ideas anyone?

dunstonh

It looks like you are asking if you can claim mis-sale. If so, I cant see why.

If it was sold under an advice process then all the reasons that allow PPI to be reclaimed wont exist. There will be a factfind, a needs analysis and a reason why letter (unlike most PPI sales). Its probably a PHI policy rather than a PPI policy as most financial advisers prefer PHI over PPI (unless they are lazy, tied and working within a budget or occupation constraint).

When I was talking about this with a friend the other day I was kicking myself for not thinking about Incapacity Benefit if the circumstances warranted it

That doesnt matter. The point of insurance is to not leave yourself on the breadline of getting benefits. Plus, most PHI plans would be taken to a level that is incremental to state benefits.

I've had very few days off work in my working life so it was an utterly needless policy in my view.

It has been so far. It wouldnt have been if you had needed it though. Thats the whole point of insurance. You cover events that may occur. It doesnt mean they will.

Why do you think you were mis-sold as nothing you have said suggests you were? Certainly nothing you can evidence.

yelf

Re-instate that premium now. If you knew the likely hood of making a claim then you would be very grateful you have it (do you have life insurance? if so have you cancelled that yet?)

joerugby

If it's a 13 year old PHI policy it might well have some generous terms and might be worth keeping.

A 13 year old pension plan, on the other hand, is ready for a serious review.