Missed Sold Life Insurance

S_Mac

Due to separation i have been going through paper work and i have come across a LIFE INSURANCE i am paying for and have been since i took my ENDOWMENT out over 10 years ago. My life insurance is surely the same as my Endowment both paying out on death? At the time i was told i needed to take both out? Does this constitute as being missed sold?

Any help appreciated...

KeepFighting_2

A couple of assumptions here
1) You have an interest only mortgage in which the principal is reqaid by your endowment
2) The beneficiaries of your Life Insurance are your children or a family member who will look after your children

If this is the case then I would say that you should have both policies as the endowment will repay your mortgage after death but that is it. Your life insurance will allow whoever is responsible for you children to manage that wihtout having to sell your house to do so leaving your children asset less. If this is the case I would say this is not miselling but good financial planning.

dunstonh

My life insurance is surely the same as my Endowment both paying out on death?

its not the same. However, both will pay out on death.

At the time i was told i needed to take both out?

Did you have a financial need? (i.e. spouse/partner. children or other financial dependents)?

Does this constitute as being missed sold?

Nothing you have said suggests it is. However, we dont have enough to go on.

opinions4u

A typical rule of thumb is that an individual should have life cover for ten times their income.

Your mortgage is not your family's only bill.

S_Mac

Hi i don't have dependents my life insurance pays out if i die? My endowment pays out if i die? Surely they both do the same?

R_P_W

you have just been told they are not the same

opinions4u

S_Mac wrote: »

Hi i don't have dependents my life insurance pays out if i die? My endowment pays out if i die? Surely they both do the same?

The endowment pays out a sum on death. Or a sum at maturity if you survive.

The life assurance pays out an additional sum if you die during the term. Nothing after the end of term (assuming it's term assurance).

As you had dependents at the point of sale, I can't see any reason for mis-sale in what you've stated. There's nothing to stop you cancelling the additional life policy. Just consider that replacing it further down the line will most likely cost more.

KeepFighting_2

S_Mac wrote: »

Hi i don't have dependents my life insurance pays out if i die? My endowment pays out if i die? Surely they both do the same?

if you are absolutley sure that you have no one that you want to leave money to or any dependants then you could cancel the policy and save the money instead for retirement. But you must be sure that you are ok with that.

GhIFA

S_Mac wrote: »

Hi i don't have dependents my life insurance pays out if i die? My endowment pays out if i die? Surely they both do the same?

You can't claim Mis-Selling just because your circumstances have changed. If you are absolutely certain you no longer need these covers then cancel them.

However, you had a dependant at the time the policies were taken out, so there would have been a need for them (particularly if the endowment was in relation to a mortgage - beware though, if you decide to cancel, your mortgage is still interest only, and the endowment is the only payment vehicle in place then you need to consider how you will repay the principal at the end of the mortgage term). There is nothing wrong with having more than one life cover in place, you would have had more than one need i.e the mortgage, and provision for your dependant. Based on what you have said it would seem unlikely that a Mis-Selling claim would go anywhere.

Let_Us_See

You are getting confused and I hope you do not think I am being patronising by simplification?

An endowment is simply a saving vehicle with "built in" life assurance with a sum assured (what is paid out on death) equivalent to your interest only mortgage. If you die within the term of the endowment, life cover will apply, and the sum assured paid out and this redeems your mortgage.