Post Office Lifestyle Protection Insurance life insurance no longer covered

JSI

Hi,

Took out a Post Office Lifestyle Protection Insuarance in February 2009.
The policy covers £500 per month for 12 months in the event of accident, sickness and unemployment and £6000 lump sum payment in the event of death, Upto the age of 65years as long as in employment.

Just received letter today to advise that the policy will no longer include life cover. I am 56 and have nine years of cover left.

They have reduced my monthly payment by £0.90p per month. New monthly payments will be £34.70pm
I am unable to replace the life cover with a new policy to cover me for £6k over the next 9 years for 90pence per month.

Policy was purchased in good in faith to cover me for life insurance, sickness, accident and unemployment until the age of 65.

As I can not obtain the same amount of life cover for the reduction in premium of £0.90 p per month I feel that the policy has been missold.
Any advice?

dunstonh

I am unable to replace the life cover with a new policy to cover me for £6k over the next 9 years for 90pence per month.

Remember that this post office plan wasnt proper life assurance. It was life insurance and only paid out on a certain criteria. Largely a rubbish plan. That is why the life insurance bit was only costing 90p.

feel that the policy has been missold.

You didnt buy under advice and it cannot be missold to you.

Any advice?

it is not a protected plan. The insurer is not required to continue offering cover.

JSI

Hi, the policy states it will pay out upon death whilst policy is in place Upto 65 years old . Usual exclusions eg suicide, drugs/ alcohol misuse. So as far as I am concerned it is life insurance that would pay out on death.

dunstonh

Usual exclusions eg suicide, drugs/ alcohol misuse. So as far as I am concerned it is life insurance that would pay out on death.

It is life insurance. It isn't life assurance. Most policies put in place are life assurance. The bottom end of the market use life insurance.

Life assurance does not exclude suicide (outside first 12 months) or drugs/alcohol misuse. Life insurance has restrictions on when it pays out. (to help muddy the waters, some products, especially those sold by supermarkets, have dumbed down their wording and call their life assurance plans life insurance).

A guaranteed life assurance plan cannot alter its terms mid policy. Whereas a PPI with life insurance can. Indeed, there is long history of providers pulling out of the market or making adjustments to coverage or premium.