Mis-sold Life insurance (not PPI)

Whitesquizzel

A very long time ago (approx 1997) I was sold life and critical illness insurance with my first mortgage. At the time I had no dependants and no one would of necessarily benefitted from this insurance being in place other than me I guess re the critical illness but at that age i am not sure that was particularly beneficial either. I took it out based on the recommendation of the advisor at the time. The policy has been running all this time (despite changing mortgages several times) although I have very little details on it despite trying to get this from the provider on a previous occasion. I still have no dependents so my question is was I mis-sold this policy and if so is there anything I can do about it?

-taff

Life insurance is usually a pennies bolt on for critical illness, so if the main part of the insurance is critical illness, then no, you weren't missold.
Have you gone directly to the proivder? If not, write them a letter quoting your policy number and ask for information.

Whitesquizzel

I had written to them a couple of years ago but they just sent me a photocopied sheet which didn't enlighten me much over the qualifying criteria for a claim and just said life and critical illness cover.

Insider101

Whitesquizzel wrote: »

I had written to them a couple of years ago but they just sent me a photocopied sheet which didn't enlighten me much over the qualifying criteria for a claim and just said life and critical illness cover.

The qualifying criteria are basically that you're dead. Or suffering one of a pre specified range of serious illnesses.

dunstonh

A very long time ago (approx 1997) I was sold life and critical illness insurance with my first mortgage. At the time I had no dependants and no one would of necessarily benefitted from this insurance being in place other than me I guess re the critical illness but at that age i am not sure that was particularly beneficial either.

My youngest CI claimant was 25. A mortgage is typically a 25-30 year contract and the protection is to cover the period of the contract. So, unless you have evidence that was available at point of sale to guarantee you would not suffer a CI claim before your 50s then you have no hope on that point.

Life cover included on a CI policy tends to add pence to the premiums. In your 20s, it may add nothing at all to the premium. Indeed, leaving it off could be more likely to put you subject to complaint on such a long term contract. Its notable that the FOS consider the term and future events that could happen over that term and have been rejecting complaints on that basis.

I still have no dependents so my question is was I mis-sold this policy and if so is there anything I can do about it?

Nothing suggests any mis-sale. It suggests common sense inclusion to cover a long term contract. If it had been life cover only then you would have a potential case (although FOS have been rejecting those too with morgtages as you are statistically likely to have a spouse/partner at some point in the period of the mortgage and you may not be insurable later in your life or it would cost you more.

If this was sold via an adviser/broker rather than the lender, then its way before regulation.

Whitesquizzel

Ok thanks it looks like the general consensus is that it was not a mis sale so I will continue on with this policy.