Life Assurance Provider admits mis-selling, now we have to agree on compensation..

cjard

In 2001 I got a whole life policy from a high street bank, death benefit 140,000 and I was advised the premiums would be £19pm forever. Ten years on, the provider has more than doubled the premium and when I complained on this basis, they admitted misselling. After many months of being refused anything other than a lump sum compensation, they've suddenly changed their minds and I've been offered the option to retain the policy at £19pm for the next 10 years and after that it will change premium and I have to accept it. The lump sum offered is equivalent to putting £19pm into a bank at 2.75% for a considerable number of years. Having looked at the market, I cannot now get another policy with anywhere near as considerable a death benefit so I do feel I'm being sold short because I'd have to buy multiple policies for much more per month. What sort of level of compensation should I be looking for? Should it be a percentage interest as if it were savings, and what would be expected as reasonable? Should I retain the policy even though I've lost faith in the integrity of the provider, changing its mind on the terms seemingly at whim?

di3004

Bumping up for you.;)

magpiecottage

You can complain to the Financial Ombudsman Service. If you can demonstrate that the firm actually said it would maintain the premium and cover at those levels for ever, FOS MAY force it to honour that.

However there is unlikely to be evidence and, by comparison, the illustrations and "Key Features" documents issued by 2001 were quite explicit.