Life cover missold?

Shelleym

Hi,

Firstly, I am not claiming I didn't know that life cover pays out if I die!

My question is regarding the way in which we were advised.

When we took out our life cover for our last mortgage, my husband had been a non smoker for 11 months. We told the advisor this. On the life cover paperwork he is noted as a smoker. After a bit of research apparently he is not classed as a non smoker til he has not smoked for 12 months. My husband has not smoked since he gave up and has been a non smoker for over 8 years now.

My question is this, should the advisor have given us more information regarding the price of the policy if he was a non smoker? Should she have advised us to revise the policy or take out a new policy once the 12 months was up? Because she definitely didn't. We did not realise the difference in the price between the two policies and have therefore paid more than we needed to for 8 years.

Any advice gratefully received

dunstonh

My question is this, should the advisor have given us more information regarding the price of the policy if he was a non smoker?

No. A life assurance application is a snapshot of the facts known at that point. He was a smoker at that time.

Should she have advised us to revise the policy or take out a new policy once the 12 months was up?

Not unless you employed the adviser on an ongoing basis.

Life cover missold?

No.

[Deleted User]

Shelleym wrote: »

should the advisor have given us more information regarding the price of the policy if he was a non smoker? Should she have advised us to revise the policy or take out a new policy once the 12 months was up? Because she definitely didn't.

It was not the adviser's duty to do this, the onus was on you to read the terms and conditions of your policy and so realise that you could save money at a later date. Now, eight years on, you finally get around to reading the T&Cs and you want to blame the Bank? The policy you were sold was suitable for you at the time of the sale and so you were not mis-sold it. Possible later changes to your circumstances were not relevant at the time.

Regardless, if you complain that the "adviser" (more likely just a member of staff) did not tell you this information, then what evidence do you have for this? Such "hearsay" type complaints are easily rejected, especially after such a long period has passed.

dunstonh wrote: »

He was a smoker at that time.

No, he was a non-smoker who hadn't given up for more than twelve months.

Shelleym

OK thanks for your advice, we just didn't realise the difference in the price of the premium.
We are about to remortgage and just noticed he is down as a smoker (which we didn't realise, as he had given up we assumed he was down as a non smoker)
But anyway, always worth asking a question, we will be changing it asap, thanks again

BTW, she was the 'Mortgage Advisor' it was taken out at the same time as the mortgage

dunstonh

No, he was a non-smoker who hadn't given up for more than twelve months.

In insurance terms, he is a smoker at the point of application. That was the point being made.

BTW, she was the 'Mortgage Advisor' it was taken out at the same time as the mortgage

Mortgage advisers are rarely employed on an ongoing basis. It is a transactional event with no ongoing review. So, the advice would be measured at point given. Not later.

[Deleted User]

dunstonh wrote: »

It is a transactional event with no ongoing review. So, the advice would be measured at point given. Not later.

Yes, I think the point has been made already..

macca1974

I had something similar a couple of years ago where I had been a non-smoker for less than 12 months when I took out my life cover. The financial adviser that I used (who was a "protection specialist") told me that I had to apply as a non smoker, but, he put me with a provider who were able to switch me onto non-smoking terms once my 12 months was up after I completed a declaration. The adviser told me that some companies would do this and other wouldn't and that he had called around.

[Deleted User]

macca1974 wrote: »

I had to apply as a non smoker

You had to apply as a smoker you mean. You received good advice, but that does not mean the OP of this thread was mis-sold.

Shelleym

macca1974 wrote: »

I had something similar a couple of years ago where I had been a non-smoker for less than 12 months when I took out my life cover. The financial adviser that I used (who was a "protection specialist") told me that I had to apply as a non smoker, but, he put me with a provider who were able to switch me onto non-smoking terms once my 12 months was up after I completed a declaration. The adviser told me that some companies would do this and other wouldn't and that he had called around.

Great that you had a very thorough advisor, we have overpaid by approx £2k over the last 8 years. We live and learn I suppose