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Income Protection Insurance missold?
sleepymans
Posts: 913 Forumite
I am helping a friend who may have been mis sold Income Protection Insurance.
Friend has been paying over £100p.m. Income Protection Insurance for some years when it turns out it was never needed!
Friend is a teacher with long service and if unable to work through illness or accident would get six months full pay, six months half pay and if still unable to work would be retired and paid an amount equal to the value of pension accrued. I have simplified the rules rather to keep post brief but I do think therefore that Income Protection was Miss sold.
What should friend,s next step be to see if there may be a claim or refund please? Is the date the policy was taken out relevant to any possible miss selling claim?
TIA
Friend has been paying over £100p.m. Income Protection Insurance for some years when it turns out it was never needed!
Friend is a teacher with long service and if unable to work through illness or accident would get six months full pay, six months half pay and if still unable to work would be retired and paid an amount equal to the value of pension accrued. I have simplified the rules rather to keep post brief but I do think therefore that Income Protection was Miss sold.
What should friend,s next step be to see if there may be a claim or refund please? Is the date the policy was taken out relevant to any possible miss selling claim?
TIA
:A Goddess :A
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Comments
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When the policy was taken out, how much would they have received from the pension? Would it have been enough to live on pay the bills etc?
If your friend thinks it was miss sold then they can make a complaint to the company who sold the policy. Their details would be on the paperwork. If still unsure your friend can call the insurance company.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
From what you say it doesn't appear missold
To answer your question the first step is to complain to the insurer in line with their complaints procedure. Then take it from their reply.0 -
I am helping a friend who may have been mis sold Income Protection Insurance.
What type of income protection?
Budget PPI version or full PHI version?
This is important as it is this, more than anything else, which will likely decide whether it was mis-sold or not.Friend is a teacher with long service and if unable to work through illness or accident would get six months full pay, six months half pay and if still unable to work would be retired and paid an amount equal to the value of pension accrued.
So, friend would appear to have an income protection need to kick in after 12 months. Pension entitlement is largely irrelevant as getting your pension paid, even when too sick to work, is not as easy as you think.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The situation now is irrelevant, only the situation at point of sale - whatever long service she has accumulated since may mean it's now cheaper to not pay the insurance, at the point of sale several years ago she wouldn't have had the same long service
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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