Yet another Insurance Rip-off

gsd121

I was lulled into buying a Sun Alliance "Michael Parkinson" Life Policy.

At the time it appeared a reasonable deal.

10 years in I have now realized that this is just another scam dreamed up by the Financial Sector.

I now pay £50 a month for nothing and, should I wish to stop payment, my policy is cancelled and no benefit is due to me! In other words, if I live for a further 10 years Sun Alliance have got £6000.00 of my hard earned cash.

Surely this is unfair trading and should be regulated.

I feel that after the original Term has passed a certain time interval a cut off in payments with no penalty would be much fairer.

It might even encourage a further purchase!

dunstonh

I was lulled into buying a Sun Alliance "Michael Parkinson" Life Policy.

At the time it appeared a reasonable deal.

They have never appeared to be a reasonable deal. They are effectively an option of last resort. Although the way they are advertised is awful.

10 years in I have now realized that this is just another scam dreamed up by the Financial Sector.

Really? The financial sector? I'm in the financial sector and you are accusing me of being party to this. Yet I, and most advisers are vehemently against these types of policies.

Surely this is unfair trading and should be regulated.

It is regulated. However, you bought without advice. So, you take on responsibility for knowing what you are buying. If you go into B&Q and buy a chainsaw when you need a hammer, then does that mean B&Q or the chainsaw manufacturer have ripped you off?

I feel that after the original Term has passed a certain time interval a cut off in payments with no penalty would be much fairer.

You do realise that life assurance is priced on cross subsidy. Those that live longer pay for those the die early on. If you do what you say they will have to reduce the sum insured or increase the monthly cost.

Whilst i do not like these products at all, you bought it. No-one forced you and effectively you are complaining that you haven't died and its costing you more than if you had.

mr_sickonit

I may be in the lull process; we had a call last week (at 8.pm...) from a company saying they had taken over the dealings regarding a possible PPI claim on a policy set up in 2006, one I already had started a claim via another company who basically were useless. This caller had the relevant details and seemed genuine so he arranged to call on 19th March to proceed with the claim. He duly showed an hour earlier than arranged while I was still out but on entering on my return he trawled through the file we had full of stuff relevant to the PPI and seemed like a good thing. Then the talk turned to Life insurance and it suddenly seemed that this was the most important topic and we have ended up signing lots of unread documents and in summary we have a group of solicitors (Middletons, Liverpool) looking at the case with the usual fees, and a new Life insurance policy with Prudential, offering £50 cashback, weekly free cinema tickets and life cover including the kids. I'm not sure if he took the important paperwork regarding the claim with him. I can feel the donkey ears sprouting on my head yet again....

mr_sickonit

regarding dunstonh, what he says is true as he is as he says in the industry and knows what to watch out for but Mr average is constantly bombarded by reams of deals and information etc and as such is open to all manner of ripping off, to put it harshly, especially the more naïve among us.

-taff

mr_sickonit wrote: »

. I'm not sure if he took the important paperwork regarding the claim with him. I can feel the donkey ears sprouting on my head yet again....

You should have a 14 day cooling off period so cancel your contracts now.
If you want to that is. In writing!

[Deleted User]

mr_sickonit wrote: »

I may be in the lull process

I have no idea what you mean by "lull" because to me that just means a quiet moment rather than any kind of high pressure sales technique.

Your post gives the impression that you are rather a "pushover" with regards sales people. I advise you to resist the temptation to welcome them into your home in future.

mr_sickonit wrote: »

Mr average is constantly bombarded by reams of deals and information etc and as such is open to all manner of ripping off, to put it harshly, especially the more naïve among us.

People do indeed buy these kind of policies, but just because they are expensive and may end up paying out less than actually paid in, does not make them mis-sold or a "rip-off". I agree they are heavily marketed on Daytime TV and in newspapers, but most who buy a policy see only a lump sum payable on death and a small monthly fee. Only those who take out the policies early on and then live to a ripe old age are significantly out-of-pocket. I agree there are better deals available, but that's surely for the consumer to shop around for?