Successful reclaim of Life Insurance Policy mis sold

moran60

Way back in 1996 when my wife and I bought our first house were advised to take a life insurance policy as mortgage protection for our repayment mortgage. This would repay a fixed amount if either of us died. Well, like many people, we forgot about it, have moved house several times, have taken out other policies over time etc. Cutting a long story short we were, until last month, still paying £20 per month to Prudential. I complained to them that the policy was mis-sold. Within a couple of weeks they agree and have repaid me £8k. The grounds were that we needed cover which would have reduced over time as the mortgage balance came down but we were paying for level cover. Worth giving it a try. Let me know if anyone else tries and is successful.

Nasqueron

It was not miss-sold, you forgot to cancel it and they kindly refunded the overpaid money

dunstonh

Worth giving it a try. Let me know if anyone else tries and is successful.

Compensation culture at it again.

Something doesnt quite match the expected outcome here. So, I suspect we are not getting the whole story.

1 - Level term can be used in place of a decreasing term assurance. Often where the premium difference is negligible. You would expect it to be documented on the records though
2 - The usual redress for that complaint would be a refund of the difference in the premiums between level and decreasing (assuming a failure in point 1). The difference on a £20 premium would probably be no more more than a couple of pound. So, redress of around £720-£1000 would be more likely if the complaint was successful on that point.

I suspect Pru couldnt find the file or there was some failure on the file. Unusual for life assurance but possible given that it was one of their salesforce cases and 20 years ago.

Complaints on life assurance are low and the uphold rate on them is low too. It looks like the OP got lucky as the complaint reason is not strong and the outcome does not match the complaint reason.

[Deleted User]

moran60 wrote: »

Nothing hidden here

Since banks don't ever explain why they uphold complaints, it's highly possible that you have been refunded for reasons completely different to those you gave in your complaint.

It sounds as if you got lucky when the Bank found something wrong with the sale (or policy) as part of their investigation, your own reasons are not (on their own) compelling enough.


Regardless, well done on your success.

PipsD

I was railroaded into taking out an insurance policy on mortgage I took out in 2003. Told at time would cover all critical illness, and continue as life cover after mortgage term ended, best to take it now as would be more expensive as I got older etc (15 years) Paid £25 per month from 2003 to 2018. I signed over mortgage to my partner of my father in 2011, yet still paid premiums as advised.  In 2018, was told policy ended, they would take no further payments, this baffled me, still does. 

[Deleted User]

Which bit is baffling you?

dunstonh

In 2018, was told policy ended, they would take no further payments, this baffled me, still does. 

Life assurance is very easy to understand.  It will pay out if you die between the start date and the end date.    This is why many life assurance quotes are less than a page of A4.    The premium sum assured and number of years of cover being the key details that are shown.    

So, what is confusing you?

Nearlyold

Are saying  you took out a 15 year Term Insurance in 2003 and are puzzled why it finished in 2018 15 years later?
When you "signed over" the mortgage in 2011 and perhaps no longer had need for the policy did you tell the insurer you no longer wanted the cover, if you didn't tell them, the policy would just continue to the end of the original term