Can I reclaim Life Insurance payments???

Migibu

I have recently been contacted by an insurance broker who have advised me that as i'm a single person with no mortgage or children that there is no point in me having Life Insurance...which i have been paying monthly for many years and that either critical illness or income protection would be more suitable for me?!?

Does anyone know whether my Life Insurance would count as being mis-sold (as the insurance companies should have known this was not the most suitable product for me) and/or whether I could reclaim my Life insurance payments?

Thanks

dunstonh

I have recently been contacted by an insurance broker who have advised me that as i'm a single person with no mortgage or children that there is no point in me having Life Insurance...which i have been paying monthly for many years and that either critical illness or income protection would be more suitable for me?!?

Generically that is correct unless you had a particular reason for having life assurance.

Does anyone know whether my Life Insurance would count as being mis-sold (as the insurance companies should have known this was not the most suitable product for me) and/or whether I could reclaim my Life insurance payments?

The insurance company wont have a clue. They received the application in the post and know very little about you other than what is required to set it up. If you bought under advice, the adviser has the liability (or their employer). If you bought direct then you cant complain as its your own fault.

custardy

what did you take out life insurance for then?

smitchy73

the insurance broker who advised you about this, will probably make some commission from selling you either income protection or critical illness cover, which for CIC is supposedly over-rated, as the conditions for it are so detailed it's quite easy for them to reject a claim on the policy.
Although I'm not an advisor, I believe that if you don't have anyone you'd like to leave money too or have a mortage to cover should something happen to you, then there's no need to have insurance at all, but on the other hand if there is someone you'd like to leave money to then I don't see what's wrong with having that, just make sure you make a will too, saying where you'd like the money to go to, cos if you don't the Queen can get her hands on it if you have no family members to claim your estate.
Income protection can be okay, but ask yourself what cover you'd get form your work, or what savings you have, and of course how long any payout is deferred for from when you claim on it, the quicker it pays out, the more expensive it is, and likewise the longer you defer the cheaper it will be.
As i said i'm not an advisor or anything like that, just my own opinion.

magpiecottage

smitchy73 wrote: »

the insurance broker who advised you about this, will probably make some commission from selling you

That is true but doesn't mean the advice is bad.

CIC is supposedly over-rated, as the conditions for it are so detailed it's quite easy for them to reject a claim on the policy.

Actually, over 90% of claims ARE paid out but I would generally advocate income protection, in the form of Permanent Health Insurance ahead of critical illness cover.

smitchy73

magpiecottage wrote: »

That is true but doesn't mean the advice is bad.



Actually, over 90% of claims ARE paid out but I would generally advocate income protection, in the form of Permanent Health Insurance ahead of critical illness cover.

Thanks magpiecottage, I bow to your professional status. I should've added that it didn't mean the advice was bad, and I hope I didn't imply that either.

I can't see how life insurance could be classed as a mis-sale anyway, at the end of the day we all die:(, just how much money you want to leave others:D is the deciding factor, if anything:(

I stand corrected anyway:D