WHOLE OF LIFE POLICY- Phoenix Life Rip Off

debra1964

Hi anyone on MSE able to help us with a longstanding complaint with a whole of life policy. Basically the shortened version is we have an endorsement on our policy which says

With effect from 2nd July 1993 the following alteration has been made to the above numbered policy:
The renewal premium is altered to £25.33 payable on the 2nd July 1993 and monthly thereafter on the 2nd day of each succeeding month as long as both lives assured are living.
The premium increase rate is altered to 0%
The guaranteed sum assured stated in the schedule is altered to £60000
The Benefit increase is altered to 4%
End of Endorsement.

This has been argued about for over 20 years as Cornhill, Britannia and then Phoenix have all tried to increase our premium we have always stood our ground by this endorsement and then Last June they lapsed our policy. I have taken it to the Ombudsmnan who have the balls of a toothless tiger! but to be fair Phoenix will not allow them to investigate further back than 2006 (one of my many many complaints which ran out of time to go to the ombudsman )

According to the Oxford Dictionaries Endorsement means -A clause in an insurance policy detailing an exemption from or change in cover.
Do I leave this go ? or do I continue to fight for my money back ? If so to a claims company or small claims court . Please help, any advice gratefully received

magpiecottage

It is not for Phoenix to decide whether the complaint can be investigated or not.

Why did FOS say they could not? Was it an Ombudsman that decided?

debra1964

Hello Magpie
thank you for answering. Apparently because Phoenix in response to one of my complaints gave me a final answer I had to go to the Ombudsman within 6 months of that back in 2007. The reason I didn't is because after all the upset & phone calls we had a statement through showing that once again my benefit had increased even though my premiums hadn't so stupidly I thought they had realised their mistake and left everything as it was supposed to be. and it was an adjudicator who advised me however if they aren't allowed to go back to the beginning is there any point in going further with the ombudsman?

CuddleBud

Hello.
Having read other posts about the above company,I am wondering what can be done (if anything) about my mother in laws policy.
She has been moved to a nursing home as she suffers from advanced dementia, Poor sight and hearing. Her personal allowance is £24.90 per week. The rest is taken for her care needs. The policy started in September 1999, paying £24 per month to date (so far paid £5,112)
The policy only pays out £3,584. Is this fair / legal. She has another policy that became free when she had paid enough to cover the payout.

dunstonh

Cornhill Life/ Phoenix life Senior Security Plan Policy

It should be noted that the plan type you are referring to here is not a whole of life assurance plan. It is an over 50s life insurance plan. So, the thread you have attached your commment to is off topic for your question.

The policy only pays out £3,584. Is this fair / legal

Yes it is legal. And in most respects it is fair.
These over 50s plans are not good value if you live beyond a certain point. Advisers treat them as an option of last resort and only use over 50s life insurance where proper life assurance cannot be obtained. They are mostly used by people who are not expecting a long life. Those that live longer cross-subsidise the payouts for those that die early on. A bit like life assurance except that with life assurance, the health of the individual is taken into account and those with poor health ever pay more or get rejected. With the over 50s life insurance, that is not the case.

Most of the plans are not sold under advice. They are bought via adverts on TV or newspapers. So, there is far less consumer protection. They just have to give a handful of risk warnings.

She has another policy that became free when she had paid enough to cover the payout.

Was that a whole of life assurance or an over 50s insurance? Most WOL plans allow premiums to be stopped after a certain age but benefits retained. I think some over 50s plans have it too but it is not as common on older plans.