TV Life Insurance Scams

Scottowner

There appears to be no criticism of TV and others Life Insurance.
Reading the small print (which appears briefly on the screen) one sees that "You may pay in more than you put in " "Inflation may reduce the value etc etc" "Premiums will increase year on year" " Insurance will have no value if you stop paying"
Surely the government can see that these policies are an outright scam.
Any insurance company can offer ridiculously low rates for the first year and then increase them so that the policy holder can not afford the new rates, cancelling his/her policy thereby forfeiting his paid premium to the benefit of the insurance company.
Can nothing be done to stop these rip off merchants ??

dunstonh

There appears to be no criticism of TV and others Life Insurance.

Its a frequent suject on the board. Been at least one thread in the last week too.

Surely the government can see that these policies are an outright scam.

They are considered a niche option that is not suitable for the majority. They have been that way for many many years. I used to laugh at the adverts when they would mock advisers with their "no salesman will call". That is because no adviser could get away with recommending them. They could only be sold on a direct marketing basis as consumer protection is reduced on non-advised products.

Any insurance company can offer ridiculously low rates for the first year and then increase them so that the policy holder can not afford the new rates, cancelling his/her policy thereby forfeiting his paid premium to the benefit of the insurance company.

That isnt what these plans are doing though.

Can nothing be done to stop these rip off merchants ??

They had their advertising rules increased a few years back but in the DIY market, there is less consumer protection. Just like most DIY areas.