Life Insurance-Living with Parents, No Children

dunstonh

"Your LTA was taken out on a 'direct offer basis'. This means that you didn't seek or receive advice from one of our financial advisers when you chose to start your LTA policy.

This is important and changes the position totally. You cannot complain about advice given if you didn't use an adviser.

I guess the part that I'm surprised about it that they can sell a product that they know is completely useless to you

They do not know it is completely useless or not as they are not providing advice and not asking questions of an advice nature.

I understand they are saying he didn't ask for advice, (which he can't recall if is true or not but doesn't make total sense to him)

Did an adviser call round or did he visit an adviser?
Did he complete a factfind, go through a needs analysis and receive a written report of the recommendations made?

but he was a customer to Lloyds banking so they knew everything there was to know about him

no they didnt. Scottish Widows Direct does not have access to banking details. Even if they did, your banking details are not sufficient to provide advice.

and they couldn't simply inform him that it's unusual for a young person, living at home with no dependents and nothing but a short term loan, to take out such cover!?

No. They cannot do that as it would be entering into advice and they have to avoid any advice issues.

So based on the information above, I guess without being able to remember anything to oppose their argument, there is not really any point taking it to the FOS is there?

There is little to disagree with their response. The minute the FOS find out it is non-advised, then any complaint about suitability or financial needs gets rejected on those points.

Slightly surprised by the response and the defiant part of me wants to take it further, but is there any point after what they have said?

I am not surprised based on the fact we now know it was a non-advised sale. The risk of not using an adviser and buying direct is that you get less consumer protection.

Any advice would be greatly appreciated

Time to call it a day as the complaint is all about advice but a non-advised service was used. You know from previous comments that we thought it was mis-sold but that was on the basis of using an adviser. Not a non-advised direct service.

magpiecottage

I agree.

It is fine to be your own adviser rather than paying somebody else to be as many on this site advocate.

But if the advice is wrong you can seek redress from the adviser. If that adviser is you, though, it will that will not help you.

[Deleted User]

"my partner lives with his parents"

I'm surprised no one mentioned last year that the OP of this thread stands to gain or be liable should his or her "partner" die and that would have made life insurance both suitable and desirable.

Regardless, the complaint has very unsurprisingly failed. Life insurance is not the largely useless and expensive policy that PPI was. People need to realise that useful insurance policies are not simply refunded on the basis that no claim has been necessary.

eastender1234

Forgive me if I misunderstand your comment moneyineptitude, but I stand to gain nothing should my partner die, unless I have a complete misunderstanding of the whole situation. We live separately and are not, and never have been, in any way financially linked. So how would I gain from his death and that life insurance policy? And the basis of my complaint was not because we wanted to be refunded because he hasn't made a claim, certainly not. I was simply trying to educate ourselves on whether a) it was missold and b) whether he has a current need for it.

Thank you all though for your replies. We were not looking at making a quick buck from this situation, but as originally stated, we didn't know much about the policy when I first posted (when he took it out, under what conditions etc) so your answers have been very helpful.

The only final enquiry I have is regarding him cancelling the policy. What is the simplest way for us to work out whether this policy is 'useless' to him in his situation? I guess what I mean is, what little debt he does have (around £2000 credit card), would that debt not die with him, I.e. His parents not be responsible to pay his credit card? But presumably his parents would get the lump sum paid to them to cover funeral costs etc? Do I understand it correctly, in which case, does he really need life insurance?

dunstonh

If the policy is sole owner, same life assured then the proceeds will go into his estate and distributed according to Will. If the policy is in trust then it will go to the beneficiary and not the estate.

What is the simplest way for us to work out whether this policy is 'useless' to him in his situation?

"Is there anyone that would be financially worse off in the event of your death" is the simplest way of putting it. If yes, then you have a life assurance need. if no, then you dont.

It doent need to be immediate worse off. For example, loss of pension benefits could be one where pension provision is one sided. Yet retirement may be decades away.

I guess what I mean is, what little debt he does have (around £2000 credit card), would that debt not die with him, I.e. His parents not be responsible to pay his credit card?

It would be deducted from his estate. He no doubt has some assets and they would need to be sold to clear to the debt. Only if there are no assets, would the debt expire. Living with parents means that some of the assets in the house may be classified as belonging to the estate and they may have to buy them from the estate if they wish to retain them.

Nearlyold

Just curious but knowing now that your partner seemingly applied for the cover of his own volition, what are his thoughts as to why he took out the cover and whether those reasons are still valid? Not being difficult or anything but trawling through the previous posts I can't seem to find any mention of your partners views on the matter.

With regard to cancellation;- I thought you had already requested cancellation in the complaint letter.