Mis-Sold Life Assurance

nitroz

Question on behalf on my grandmother, 20 years ago (1990)when she was 40 she was sold a 20 year life insurance policy by eagle star, now Zurich. It was made very clear to her by the person selling it that if she had not claimed after the 20 years had past she would be entitled to a cash lump sum. But after receiving a recent letter she has found out she is entitled to nothing.
It is my understanding this is the correct way a covertable life assurance policy works and she was not entitled to anything, and by all definition she has been mi-sold it, "she would never of taken it out if she hadn't of been told there was a cash return at the end", does anyone have any prior experience of this with Eagle Star or know of any successful cases of this kind, and what steps she needs to take to take legal action.

yelf

very little hope. does she have any letter of suitability?

Annisele

1990 is probably a bit early for there to have been a suitability letter.

Generally complaints that term assurance was mis-sold are only upheld if the policyholder can show that there was not need for life assurance - usually because they were single with no dependants. Where somebody had children, it's relatively easy to argue that life assurance was suitable.

Does your grandmother have anything in writing to say there will be a cash lump sum at the end of the term? It's likely that there is quite a lot in writing (policy documents etc) to say that there won't be a lump sum, so she'd need pretty strong evidence to counter that.

dunstonh

Can only agree with above.

If she had no financial need in 1990 then she has a case. However, if she had a financial need then there is no hope. The vast majority of life assurance plans have no value at the end. Those that do (or did) often cost 10 times more per month to get the same level of benefit. Therefore making them totally unrealistic for proper life assurance needs.

what steps she needs to take to take legal action.

Forget that. Chances are she has no evidence to back up her claims and as she is complaining she wanted something that is not the norm, you cant see a solicitor even considering the case. Plus, who do you take to court? I don't believe Eagle Star had a sales force but sold through IFAs and brokers. So, they have no liability. That would mean she would need to look at the seller. Does she know he sold it?

nitroz

Thank you for the responses, very helpful, sadly she has no letter of suitability or any documents to back up her claims and 2 kids and a husband at the time of taken it out so no chance there either. pretty sure she doesn't know which IFA or broker too so ill advise her to leave it.

Ludders_2

If you do want to pursue it, send your complaint to the insurer and if it was a broker that sold it they will tell you which one.

dunstonh

she has no letter of suitability

Wouldnt do on a 1990 case. There was no requirement to then.

2 kids and a husband at the time of taken it out so no chance there either.

Thats the bit that cant be overcome. There was a financial need for life assurance. So, it would be an easy one for them to reject.