Critical illness insurance mis-sold

enfield21

Hi,
Has a precedent been set for anyone claiming that they've been mis-sold a whole of life critical illness insurance policy?
I know that Martin isn't a fan (wish I had known that 10 years ago) but we've just had our 10 year review of a critical illness policy that we took out in 2002 and it makes pretty grim reading. Either we keep the premiums as they are but the payout would drop to less than a quarter (no where near covering our mortgage), or we stay at the same payout but the premiums quadruple, or we keep the premiums the same and the payout the same until the value of the policy runs out (or something like that) - this option is no good as the current value of the policy is minus £1895...
Your thoughts and suggestions would be much appreciated.
Kind regards,

opinions4u

enfield21 wrote: »

Hi,
Has a precedent been set for anyone claiming that they've been mis-sold a whole of life critical illness insurance policy?
I know that Martin isn't a fan (wish I had known that 10 years ago) but we've just had our 10 year review of a critical illness policy that we took out in 2002 and it makes pretty grim reading. Either we keep the premiums as they are but the payout would drop to less than a quarter (no where near covering our mortgage), or we stay at the same payout but the premiums quadruple, or we keep the premiums the same and the payout the same until the value of the policy runs out (or something like that) - this option is no good as the current value of the policy is minus £1895...
Your thoughts and suggestions would be much appreciated.
Kind regards,

On what grounds do you think it was sold in a way that didn't meet your needs?

Are you immune from critical illnesses?

dunstonh

Has a precedent been set for anyone claiming that they've been mis-sold a whole of life critical illness insurance policy?

Extremely hard to mis-sell a CI policy.

I know that Martin isn't a fan (wish I had known that 10 years ago)

Most consider Martins opinion as wrong. it is so far from reality. It may not even be an article written by him but someone else which he has put his name to.

Your thoughts and suggestions would be much appreciated.

Have you looked to modern versions without an investment element to see how they compare to these old style plans (which are mostly not available for new business any more)

ACG

Forget what martin thinks... he isnt a mortgage or financial advisor.
If you cancelled it because Martin didnt like it and then had a heart attack the next day - what would your thoughts on martin be then?

Its one of those from when you were kid... If martin said jump under the bus would you?
Martin is very good at saving money, he isnt qualified (as far as im aware) to be telling people whether or not critical illness (or any protection product) is a good thing or not.

OshayAway

It seems it's all been said really.

No one put a gun to your head to take out the cover, the risks of the effect at review points on the renewable plans are made clear at the time and if you had / do suffer a condition and make a valid claim the policy would pay out.

There are no grounds for a miss selling claim.

On the subject of Martin's views on critical illness cover in general, I think it's safe to say that no one who posts on here and works in the industry would share those views. I suspect that most, if not all, have seen the protection these plans provide when their clients have claimed.

_Andy_

Oh well if Martin Lewis said CI is bad it must be. You won't be thinking that if you need to claim (and I've known people who had it and others who didn't both need to - not pretty)

But hey, why not follow the 'advice' of a journalist who isn't qualified.

kingstreet

The better plans are paying out in well over 90% of claims for critical illnesses. Martin's "opinion" was formed when that may not have been the case and perhaps with the so-called "value" plans with fewer and narrower definitions of illness in mind.

stephenni1971

Did you have a mortgage when you took it out?

I only ask because a WOL policy wouldn't normally be recommended to cover a mortgage need - it's complete over kill as your mortgage debt reduces over time and normally finishes before retirement. WOL is a rare enough beast for exactly the reasons you have given -

If however it was advised as a stand alone product though as others have said I fear you wont have much grounds for complaint.

dunstonh

There used to be budget and comprehensive plans for CI cover. The budget plans were quite poor value for money. However, we are going back some time. It is possible that an opinion was formed on the basis of the budget plans without knowing comprehensive plans existed. Modern plans from providers seem to be fighting it out to cover as many extra things possible and there is now quite a range between the ABI standard and the top quality plans.

A number of the articles on this site have misplaced opinion or obsolete information. The articles are not updated with the same frequency they used to be. For example, the pensions article is written in a style that many to interpret that Aviva to be best. It still refers to Aviva as Norwich Union and the product used in the pricing table has not only been replaced but that replacement has been replaced as well. There is not one mention of the explicitly charged pensions which have been available for around 7 years which mostly come in cheaper.

Bakewell54

RE HSBC Mortgage Protection Plan with CIB October 2001

Hi, I am wondering if I was mis-sold as I believe that no account was taken of my self-employment.
I no longer have the policy nor the mortgage.
Is this under PPI? Or similar.
Please advise but don't criticise me for asking.
I have been successful in 2 claims for PPI.(Thanks Martin!)
Thank you for reading this.

dunstonh

Hi, I am wondering if I was mis-sold as I believe that no account was taken of my self-employment.

Self employment is irrelevant to the cover.

Is this under PPI? Or similar.

it is not PPI.