Help Required - Life Assurance and IPB

Hopewea

Hi,

I purchased a new house over a year ago and it has come to light that I am paying for my life assurance with Critical Illness cover aswell as ICB (Income Protection Benefit).

At the time of setting up the insurance I only asked for Life cover and Critical Illness and thought the 2 direct debits was 1 for life and the other for critical illness.

It turns out that this IPB was also setup but I did not see any details of this on my contract details and this is one of the direct debits.

My company pays full wages for the first 26 weeks of any ilness so I really didnt think this was needed.

I have spoken to the insurers who state as my mortgage company passed me to an independent finanicial advisor to setup the plan I must speak to them.

Just like PPI can I claim I was miss sold the IPB?

kingstreet

No you can't. You would need to demonstrate the cover was unaffordable or there was some reason why it was unsuitable for you.

If you look at the documentation the adviser gave you at the time, is there a suitability letter included? It should show the reasons why the products were recommended, why they matched your needs and expectations and how they were affordable.

Post back and tell us what it says.

Was there a different provider of the Life and CI to the IP?

Hopewea

kingstreet wrote: »

No you can't. You would need to demonstrate the cover was unaffordable or there was some reason why it was unsuitable for you.

If you look at the documentation the adviser gave you at the time, is there a suitability letter included? It should show the reasons why the products were recommended, why they matched your needs and expectations and how they were affordable.

Post back and tell us what it says.

Was there a different provider of the Life and CI to the IP?

Thanks for your reply...

No same provider for both, I will take a look at the documentation and let you know.

ACG

To be honest, you still have a need for Income Protection. Its very rare that i would place Critical illness cover above Income Protection when im with a client.

But as stated you should have received a letter explain what was recommended and why. This letter has a number of names but it can be a Statement of Demands and needs, a suitability letter/report or something along those lines.

dunstonh

it has come to light that I am paying for my life assurance with Critical Illness cover aswell as ICB (Income Protection Benefit).

All of which are typical products used to protect yourself and family if you have large debts. So far so good.

It turns out that this IPB was also setup but I did not see any details of this on my contract details and this is one of the direct debits.

I have to say that it seems unlikely that could occur. Everything is issued by the adviser. However, even if we assume the adviser didnt issue it then the provider issues a copy illustration and cancellation rights for each one. Also, the direct debit rules require the provider to notify you in writing of the dates and amounts and finally you have the suitability report which details everything you have.

My company pays full wages for the first 26 weeks of any ilness so I really didnt think this was needed.

What happens after 26 weeks?

Just like PPI can I claim I was miss sold the IPB?

Cant see anything to complain about. Income protection is designed to kick in when employer sick pay ends. So, there is no overlap and you clearly have a financial need. So, no mis-sale seems likely.

Most PPI complaints are upheld as they are not done through an adviser, they were set up on single premium, not eligible and had no financial need. None of those things apply to you. So,its nothing like PPI.

The key document of the whole lot is the suitability report/statement of demands and needs. However, at the moment, based solely on what you have told us, the odds of a complaint being successful for the reasons you have given are low.

magpiecottage

I do not see anything in what you say that would lead me to uphold a misselling complaint. In particular, I agree with ACG's view that protecting your income should come before critical illness. Apart from anything else, if you do not get the "right" illness or are not "lucky" enough to get it sufficiently severely it will pay nothing - yet you still may not be able to work.

Furthermore, it pays out for as long as you are too ill to work, or until the policy expires if that comes first. As DunstonH says, without it after 26 weeks you would be stuck.