critical illness/income protection plan

spencer999

Found an ancient "non-qualifying income protection plan", taken out with Allied Dunbar in 1989! Total contributions about £1500. I've just got the paperwork from Zurich who took them over.

Taken out at the same time as a mortgage. It was referred to as "critical illness" and the cover was for just under £10k pa, with a 3 month deferment!

Sorry to be daft but do you reckon this qualifies for a claim?

EDIT - I meant a claim for mis-selling

societys_child

A claim, have you suffered a claimable event or are you considering making a complaint?

dunstonh

Sorry to be daft but do you reckon this qualifies for a claim?

if the policies are no longer in force then you cannot claim on them. You can only make a claim if they are still providing cover.

spencer999

I've heard people chattering about old critical illness and income protection plans, and whether compo is due because of mis-selling.

Something about very high commissions and the cover being worthless anyway.

I should have worded my post differently. I didn't want to claim on the policy, I wondered if it had been mis-sold in the first place

SOZ

spencer999

a complaint, sorry societyschild, I worded it badly. Wondered if it might have been mis-sold

dunstonh

I've heard people chattering about old critical illness and income protection plans, and whether compo is due because of mis-selling.

Where?

The complaints stats don't indicate any issue with either of those. Both have very low levels of complaints. Not unexpected as PHI (income protection) is considered one of the most important insurances someone can have and CIC has better claims rates than life assurance.

Something about very high commissions and the cover being worthless anyway.

You are mixing up products as neither of those apply to the two types of plan you mention. The commissions issue applies to PPI.

spencer999

I thought PPI WAS income protection?

spencer999

I have a feeling it was sold in conjunction with a mortgage. I bought my first house at the same time

Deewm76

Critical illness cover is term assurance designed to pay off your Mortgage/other loans/liabilities due to you not being able to work because of a critical illness (ie. Cancer) It’s paid in a lump sum and is recommended alongside a new mortgage.

spencer999

thanks Deewm. I need to find out if what I've been told informally is true, that Allied Dunbar mis-sold the cover to go with mortgages ie there was excessive commission or the cover was very poor or not applicable to me in some way

dunstonh

spencer999 wrote: »

I thought PPI WAS income protection?

There are two types of PPI that could be classed as short term income protection but most types are payment protection (the PP in PPI). None of the types of PPI fall under the same classification of real income protection, which is a long term insurance issued by life assurance companies. PPI is short term insurance issued by general insurance companies. Comes under different classifications in the FCA rulebook too.

You can still buy PPI today. Although only in the two types that were considered good.

However, the best form of income protection is PHI (permanent Health insurance). Very different from PPI.

I need to find out if what I've been told informally is true, that Allied Dunbar mis-sold the cover to go with mortgages ie there was excessive commission or the cover was very poor or not applicable to me in some way

Already answered on this thread. There is no such thing as excessive commission in respect of that product type.

The cover was not very poor. It is one of the most important and best types of insurance going. And it was totally applicable to you.