Critical illness mis-selling? Discussion

Nearlyold

Critical Illness policies do not cover being off work with depression nor do they cover redundancy so you must have had a different type of cover, it sounds more like Mortgage Payment Protection.

You should have complained at the time if you felt the insurers decision was incorrect.

From what you say the insurer made the correct decision based on pretty standard terms and conditions ie won't cover pre exisiting illnesses and you have to be looking for work to claim on unemployment. When you were sold the policy were you asked any medical questions at all?

dunstonh

Following my divorce in 2000 I bought a property for myself and my two teenage daughters. I took out a policy for critical illness to protect the house should anything happen.

Sounds ok so far.

4 years later at the time I was made redundant on the day of my Mums funeral I suffered a breakdown and as I seemingly had not advised the insurers that I suffered from depression - not that I knew I was suffering from depression anyway and when I questioned my GP she said that as I had had one counselling session that I was depressed - the policy refused to pay out on that point.

I would have thought the reason they didnt pay out is that the policy didnt cover your scenario. Depression and unemployment do not fall under a CIC policy.

As I also had unemployment element to the insurance I tried to claim the mortgage payments on that basis and was told that as I was not registered to look for work I could not claim it. I was physically unable to look for work due to the mental breakdown.

Unfortunately, redundancy cover requires you to be working. Ideally, Permanent Health insurance would be needed in this scenario.

As far as I am concerned I cant believe that a policy can be sold that does not pay out.

Why should it pay out? You didn't suffer a claimable event. This thread is about critical illness cover. Not about income protection or PPI. Sorry.

I would love to know if this is acceptable behaviour?

You havent indicated any wrongdoing. It appears you are mixing up your insurance types.

lotofchar

I felt like this happened to me, as a 25 year old with no children or dependants, but I just wanted a mortgage so agreed to whatever HSBC said I had to do.

I did cancel the policy after about a year and then tried to claim it back a few years ago but they said it was my word against theirs - as on all the paperwork it said that it was optional, but I was told I had to have it.

It's just wrong, as you don't always have lots of time to do research when you are trying to buy a property as they go fast so you need a mortgage ASAP and they take advantage of that and also of first time buyers.

broomey

Critical illness - the best policy I've ever been mis-sold. Were told we had to have it for the mortgage, yes mis-sold, but part of the critical illness cover included a funeral benefit for children. After losing our son earlier this year, knowing we could pay for it and not have to borrow for it was a huge weight off our shoulders.

[Deleted User]

broomey wrote: »

Critical illness - the best policy I've ever been mis-sold. Were told we had to have it for the mortgage, yes mis-sold, but part of the critical illness cover included a funeral benefit for children. After losing our son earlier this year, knowing we could pay for it and not have to borrow for it was a huge weight off our shoulders.

Hardly mis-sold if you were able to claim on the insurance.

Being told the insurance was compulsory is only mis-selling if it actually wasn't. Many mortgages did require this insurance as a condition of borrowing.

Sorry to hear of your bereavement...

BrendaWanger

I have been given a settlement figure for miss-selling of critical illness. I would like to know if I am entitled to compensation on top of money back just return things the status quo. The company has added interest on at 8% which they say is in line with normal court settlements but should I seek compensation on top and if so how much. This is what I have been told.

I have been offered Policy commenced 10 January 2012
Regular monthly payments made to 2 October 2016 = £743.53
Plus interest from the date premiums paid to 12 Dec 2016 @ 8% simple* = £190.21
Sub Total = £933.74
Less basic rate tax (at 20%) on the interest amount = £38.04
Making a total payment to you of = £895.70

*Interest has been calculated using 8% a year from the first premium paid date up to 28 days from the date of this letter. This has been applied to put you back in the position you would have been in had you not taken out your policy. This interest rate is in line with the approach of the courts and the Financial Ombudsman Service (FOS) and is considered to be fair and representative of both historic losses and current interest rates being charged on overdrafts and loans.

Could someone please advise me if I should pursue this further. Thanks Brenda.

Keep_pedalling

Things have been returned to the SQ, you can't claim for anything else.

dunstonh

There was a a near identical post the other day that I responded to but has gone missing now.

Could someone please advise me if I should pursue this further.

Nothing to gain if you do. It would be a complete waste of time.

[Deleted User]

dunstonh wrote: »

There was a a near identical post the other day that I responded to but has gone missing now.

Hardly "missing".
Perhaps "Brenda Wanger" is related to "Martin Wanger" ?
https://forums.moneysavingexpert.com/discussion/comment/71645492#Comment_71645492

Pj1949

I know this is an old thread but recently I have found that I have been paying for a critical illness policy for a mortgage I never had for a house I never lived it.

Not only that but there was also a similar policy which I alwasy believed to building insurance. It seems i was given a mortgage with no building insurance in place


Could somebody help me with what to do next Many thanks