Permanent Health Insurance

surveyor54

Anyone know if this can be mis-sold like ppi.
I had to take one out as a condition of loan (paid off) in 1997. As I take annual profit rather than wage I doubt if it was ever suitable. The only thing is the policy has a with profits element. Also its with Royal scottish assurance while the original loan was with RBS. I don't know whether the bank should be contacted (not my bank anymore) or the insurer. Any ideas ?

dunstonh

Anyone know if this can be mis-sold like ppi.

Very rarely. It is regarded as one of the most important insurances someone can have by advisers, the regulator and the ombudsman. The way it is underwritten at point of sale (unlike point of claim like PPI) and has deferment periods designed to kick in similar to employer benefits running out means overlap is minimum or non existent. Complaints stats show virtually no sales complaints.

I had to take one out as a condition of loan (paid off) in 1997.

You will never be able to prove it. Plus, unlike PPI, this would have been put in place under an advised process. Not a sales process. On PPI, just 0.2% of the complaints at the FOS are advised. Most of which end up rejected. It also means that it is unlikely that the person that advised on the policy would not have been the person agreeing the loan. The advising agent would have been individually registered with the regulator, there would be a factfind, needs analysis and a suitability report (or reasons why letter as it was called back then). All that stacked against an allegation 16 years later without a jot of evidence to support it.