Pensions & PPI

bettybean_2

Hello

I have had a pension since I was 19yrs old (am 34yrs now) and last year I cancelled the protection I took out at the same time as I could see no point to having it anymore and the one time I tried to claim it didn't cover me.
Today, whilst driving I heard a discussion about PPI's and claiming back and wondered if that only applied to ones taken with loans or if pensions are covered to?

I was young and so confused by the whole process when I took it out (worried into what would happen if I didn't take it) I said yes and paid £10 a month ever since.

Would love to hear some advice.

Thank you

Betty

dunstonh

oday, whilst driving I heard a discussion about PPI's and claiming back and wondered if that only applied to ones taken with loans or if pensions are covered to?

What you would have had would either have been pension term assurance or waiver of premium. Neither are PPI. So, in that respect, no, it does not apply.

Assuming it is waiver of premium, it has been best advice for decades and still is today (although its not widely available any more) to recommend waiver of premium. It is expected that an adviser recommends and document in their file and on the report issued that it was offered and why it wasnt taken (if it wasnt).

It is virtually impossible for someone to get an upheld complaint on waiver of premium given the terms. You cannot say you wont be ill as you dont know that and WOP will pay out from 26 weeks (typically) until the maturity date of the pension. No employer pays out that long. So, it doesnt overlap with sick pay.

The product is virtually always put in place under an advice process rather than a sales process (so audit trail will exist). It is medically underwritten at point of sale (unlike PPI).

Whilst any product sale can be complained about, you would need to have a damned good reason for complaint on this one.

I was young and so confused by the whole process when I took it out (worried into what would happen if I didn't take it)

Good. That proves the adviser did their job. It is a requirement for an adviser to disturb you on your potential needs and shortfalls. Not having WOP is a risk and the consequences can be significant. As an adult, you are in a position to decide to accept the product or take the risk.