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St James Place life assurance policy

Gilbert_J
Gilbert_J Posts: 1 Newbie
in Insurance & life assurance
My mother took out a lifetime protection policy from St James Place and has paid premiums since 1992. The policy was recently reviewed and the premium doubled in order to maintain the same amount of cover. This new premium would now take 20% of her retirement income and as she is now paying for nursing care she cannot afford this. The options given by St James Place are to pay the new premium to maintain the current cover; to continue paying the same premium for half the value of cover or to cash in the policy. However the policy is only worth 20% of the value of the premiums paid in.

We have seen that others have had issues with this type of policy which appears highly unsuitable for someone who is on a fixed retirement income. What would be sensible approaches to St James Place and the ombudsman with a view to her obtaining a refund of her premiums ?

Comments

  • dunstonh
    dunstonh Posts: 120,213 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    What would be sensible approaches to St James Place and the ombudsman with a view to her obtaining a refund of her premiums ?

    Why do you think she deserves a refund?
    What wrongdoing do you think SJP have done?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What does the policy cover?
    If she is in a nursing home does she still require it?
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I cant see she has any valid reason for a refund of all premiums, it may be unsuitable now but it wasn't when she originally took it out.


    As above, what does it cover
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • dunstonh
    dunstonh Posts: 120,213 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Lifetime protection plan was life assurance. Its basically an investment backed whole of life assurance. Quite normal for 1992. Term assurances and non-investment backed whole of life assurance didnt really come in with the old salesforces until mid to later 90s. It went obsolete mid 90s.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    dunstonh wrote: »
    Lifetime protection plan was life assurance. Its basically an investment backed whole of life assurance. Quite normal for 1992. Term assurances and non-investment backed whole of life assurance didnt really come in with the old salesforces until mid to later 90s. It went obsolete mid 90s.

    Is there any money to come back to the policyholder if she cancelled now?
  • dunstonh
    dunstonh Posts: 120,213 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    jonesMUFCforever wrote: »
    Is there any money to come back to the policyholder if she cancelled now?

    Surrender value of the policy would be due.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    1,000 Posts Combo Breaker
    I have seen complaints of this nature. Occasionally FOS will uphold them. However, in my experience most are rejected.
This discussion has been closed.
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