mis sold critical illness insurance yes/no??

plane340

Hello everyone.
I have just been reviewing my insurance policies after changing address.
I am 48 and about 25 years ago I took out a Critical Illness policy with Barclays (asure) with a sum assured for approx £135000.
Back then the monthly premium was around £20. After I turned 30 the premiums started increasing every year and now it's about £135 per month with a surrender value of about £5800.
Back in 2002 when buying a property I was advised by my then FA to take out a 'life insurance policy'. He found one with Legal & general costing £91 per month and a payout of £180000.
A few years later back in 2007 when I moved again I wanted to top up my life insurance and found a policy with scotishequitable for £16 per month and a payout of £135000.
Having recently spoken to legal and general, my policy with them includes 'CI' which I simply did not need or did not ask for.
I was/am very happy with the original Barclays one.
And now I can see the huge difference in premiums .....
£91 for £180000 and £16 for £135000.
I feel that I was mis sold this policy and have been paying all this time for the 'CI' part of the policy that I did not ask for or need.
Any advice please.
Thanks

[Deleted User]

Nothing here indicates any mis-selling took place, I'm afraid.

Buyer remorse at having paid insurance for a long period without making a claim is certainly evident, though.
You can certainly state you haven't needed the Critical Illness cover so far, but isn't that the whole point of insurance-that it's there only if you need it?

As for not wanting the insurance, why are you only complaining about that 25 years on? Why didn't you cancel the insurance back then?


Insurance policies are not refunded simply because there has been no claimable event. If they were people who have not been burgled or involved in motor accidents would similarly want a refund of their respective insurance policies.

plane340

Hi Moneyineptitude.
Thanks for your quick reply.
I am not complaining about the Barclays policy I took out 25 years ago.
I was/am very happy to have this in place.
My complaint/concern is that my then FA was made aware that I had this policy at the time of taking out the legal & general policy.
Why was I given a policy which had added CI - greatly increasing the premium when I did not need further CI. I only needed and asked for LI as I did when I took out the 3rd policy with SE.
Obviously I have been paying for something that I did not need or ask for.

dunstonh

Having recently spoken to legal and general, my policy with them includes 'CI' which I simply did not need or did not ask for.

1 - You would have been issued with a quote a point of sale telling you.
2 - you would have been issued with a report explaining the product, premium and cover
3 - You would have been sent another quote by L&G with the cancellation rights
4 - you would have been issued with two copies of a policy document.

So, even if you didnt get one of these, you would have got the other 3.

This makes your allegation very unlikely succeed in a complaint. Plus, 135k is not really that much. 10x salary is not an unusual figure for CIC nowadays. So, you cant really say you had too much.

I was/am very happy with the original Barclays one.

Woefully obsolete in terms of set-up. Coverage may or may not be up to modern standards.

[Deleted User]

You weren't "given" a policy, you signed up for it. I still can't see why you say it was mis-sold. If you didn't want the Critical Illness why didn't you tell the Financial Adviser at the time? Why did you agree to it if you didn't need or want it?

It is possible that the CI element of the policy was just an added extra and that the FA regarded it as good value or that the original Barclays policy was seen as inadequate.

Are you sure the premium was "greatly increased" by the addition of Critical Illness.?

Why are you only now asking this? Why didn't you ask at the time?

-taff

Your FA wasn't regulated at the time of sale.