Halifax GIP

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
2 replies 971 views
glamorgansglamorgans Forumite
1 Post
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
I took out a GIP (Guaranteed Investment Plan) and at that time was told by Halifax employee that insurance was compulsory. Is this correct or can I claim for mis sold insurance like on a credit card? My late mother also took out s similar GIP and she too paid this insurance. She passed away and the account was closed and paid back. Will the insurance on that GIP also be eligible for a claim? I cannot find the appropriate items listed on the resolver letter to make a claim for this at it appears only to be for credit cards or loans and not investments.

Replies

  • antrobusantrobus Forumite
    17.4K Posts
    ✭✭✭✭✭
    glamorgans wrote: »
    I took out a GIP (Guaranteed Investment Plan) and at that time was told by Halifax employee that insurance was compulsory. Is this correct or can I claim for mis sold insurance like on a credit card? My late mother also took out s similar GIP and she too paid this insurance. She passed away and the account was closed and paid back. Will the insurance on that GIP also be eligible for a claim? I cannot find the appropriate items listed on the resolver letter to make a claim for this at it appears only to be for credit cards or loans and not investments.

    It's not insurance. It's some kind of investment product.

    I'd suggest you contact Halifax to find out how much it is worth.
    https://www.halifax.co.uk/investments/existing-customers/contact-us/

    You can, of course, still complain that it was mis-sold.
  • edited 30 November 2017 at 1:08PM
    dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    edited 30 November 2017 at 1:08PM
    I took out a GIP (Guaranteed Investment Plan) and at that time was told by Halifax employee that insurance was compulsory. Is this correct or can I claim for mis sold insurance like on a credit card?

    The guaranteed investment plan was an onshore investment bond. It fell under life assurance taxation rules because it had a nominal amount of life assurance. That was part of the product and not optional. You cant have an investment bond without life assurance otherwise it ceases to be an investment bond. It is the nature of the beast and it dictates the taxation rules it falls under.

    In over 20 years of investment advice I have never ever heard anyone refer to the life assurance element as being told the insurance was compulsory. That would be like buying a phone and being told that the ability to make phone calls is compulsory. It is part and parcel of what the product is. I wonder if your recollection is not quite there considering how long ago this was. Memory fades after all.
    She passed away and the account was closed and paid back.

    So, there was also a financial gain made because of the notional life assurance amount.

    For reference, you cant get PPI on investments, food, clothes, petrol etc. PPI covers debts.
    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.
This discussion has been closed.
Latest MSE News and Guides

Card providers to reserve up to £100

When you pay at supermarket fuel pumps

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals