I wanted Income Protection, but I have found out I have a Life policy?

Ant1968

I bought a house a few years ago and 2 years ago I decided to get an Income Protection policy incase I lost my job.
I have been paying in to this policy for almost 2 years now and my fears look as though they are about to happen as my job looks very dodgy.
I thought I had best find out my documents and read through in case I need to make a claim to cover my bills for a while until I can find a employer.
On reading the policy, it looks as though they have sold me a Mortgage Decreasing Cover Plan. Ok I realise I maybe should have made sure of things a little better when the documentation came through, but I honestly thought it would all be settled and correct and thought reassuringly that I am now covered. So I have been paying them monthly for 2 years for nothing.
I have rang them to ask and this is what I have.
I don't have Mortgage Protection as I thought I would be covered by my Income protection.
I have since called the Zurich and asked to apply for a complaint to be filed with them.
It is at an early stage, but has anyone else had this problem and does anybody know the best way to go about it?

lisyloo

You are correct that there should be a compliance file.
You should have been asked about your needs and there should be some documentation about that.
You may well have signed to say you read and understood.

In your situation I would first look at the evidence and you have correctly asked for the details.
If your signature is against documentation that shows that you wanted life protection and you've signed to say your "read and understand" it then you are going to have a very hard time claiming otherwise.

This is partly about what you can prove, so I would wait for the file before deciding whether it's worth pursuing.
But you can make a formal complain which can be pursued to an independent ombudsman for free.

There is also the fact you are meant to read what is sent to you.
If it's completely the wrong product for two years and correspondingly a completely wrong price then you have to accept some responsibility for not checking at such a major level.

Ant1968

I'm not overly worried about claiming anything against Zurich, but I'd just like to be covered incase I need to claim to pay the bills.
Thank you though.
Hopefully my policy may be "swapped" over to the one that I wanted. I guess I will just have to apply again and get the right one.

lisyloo

When you say you job look very dodgy what do you mean?
Has anything been formally announced?

If something has been formalised (as opposed to rumour) then you will not be able to get cover for it.
If nothing has been formalised yet, then you will be able to swap the policy going forward but there will be a deferred period when you won't be able to make a claim e.g. the next 3 months.
This is to try to stop people just taking the insurance when they think their job looks very dodgy.

Income protection will be a lot more expensive than the life protection you've had. Basically because there is a much higher chance you'll be made redundant than you will die.

Ant1968

No nothing formal yet, I'm hoping there wont be. I just know things aren't right and being 1 of only 3 employees in the company, you know when something isn't right.
I'm not the sort to make a claim for anything lol. If i was laid off I'd do my utmost to keep things going as they are with another job. I only really want this cover if things get to the point where I can't pay the bills.

dunstonh

I have since called the Zurich and asked to apply for a complaint to be filed with them.

Did Zurich sell it to you?

On reading the policy, it looks as though they have sold me a Mortgage Decreasing Cover Plan. Ok I realise I maybe should have made sure of things a little better when the documentation came through, but I honestly thought it would all be settled and correct and thought reassuringly that I am now covered. So I have been paying them monthly for 2 years for nothing.

What if you had died in that 2 year period?

It is at an early stage, but has anyone else had this problem and does anybody know the best way to go about it?

If you have financial dependants, then a complaint is easily rejected as you have a need for life assurance. If you have no financial dependants then the complaint should rule in your favour as you dont need life assurance.

Are you sure its life assurance only? Many of the modern plans can bundle life assurance, critical illness and/or permanent health insurance and/or MPPI into them.