Mis-sold Lifetime care plan

Annied

Hi Hoping for some advice please.
In 2004 my father took out a Lifetime care plan for my mother. It cost nearly £90000 and she would of had to of lived at least 8 years to benefit. Sadly she only lasted 10 months and the company said there was no refund. I believe we were mis-sold the policy based on her condition at the time. As my father has now passed away and i am in charge of his affairs i would appreciate any advice as to whether i could pursue a claim.
Many thanks.

McKneff

You really need to read the terms and conditions.
Why do you think it was miss sold.
It seems as if its like insurace and is just a gamble same as paying into a private pension is and popping your clogs 1 month after rrtirement

Annied

Sorry i forgot to say my mother had parkinsons and i believe we were mis-sold based on her condition at the time.

dunstonh

Annied wrote: »

Sorry i forgot to say my mother had parkinsons and i believe we were mis-sold based on her condition at the time.

It is hard to see how one of these could be missold.

They are an option that usually involves a solicitor. So, that covers off the legal side.

They have a specific objective in that care home fees will be paid for life irrespective of how long that life is. The amount it costs is medically underwritten at point of sale. So, someone in poor health would be offered better terms than someone in good health.

It is a product with very large cross-subsidy and it is a key risk warning given in the documentation and solicitor discussion. i.e. those that die early will likely get back less than they paid. Those that live longer will significantly gain.

As you do not know your date of death, this is a risk that is unknown.

It cost nearly £90000 and she would of had to of lived at least 8 years to benefit.

Have you included indexation on care fees as they normally rise higher than inflation and the plan covers the increases? i.e. the cost in 8 years would be almost double the cost at the start. Or have you just divided the amount by the first year fees?

The alternative to doing one of these is that the money runs out if the person lives longer. Some of them do have partial capital return options in case of early death. Although these cost more. So, your father would have made that decision back in 2004.

What evidence do you have that points to wrongdoing?