Mis-Sold Whole Life Insurance query

ppeetteerr

Hello, hope this is in the correct forum.

Back in 2009 we sought the help of a financial advising company to help with setting up a 7 year mortgage. They advised us on this and also recommended taking out a Lifetime life insurance with LV.

I now have a feeling that we may have been mis-sold this life policy and would like to claim to recover premiums paid but am not sure who to claim against. Should I complain against the financial advisors company or LV.

Any advise please.

Edi81

It would be against the seller/advisor. 

However, why do you believe you were missold? 

dunstonh

I now have a feeling that we may have been mis-sold this life policy and would like to claim to recover premiums paid but am not sure who to claim against.

How was it missold?    

From what you are saying, you covered the initial need but they identified a further need (which is quite common -  things like income replacement for spouse/family, lost pension entitlement etc).    So, what have they done wrong?

LV doesn't currently have a product of that name and I can't find any reference to it online.  LV are known for having non-standard plans as well as conventional ones.

ppeetteerr

The  policy is a Lifetime +/Joint Life/2nd Death (on my wife and myself) taken out to cover a 7 year mortgage.
The first reason for concern is that we wanted the life insurance to be paid out when the first person died (there was an option in the LV brochure to choose whether payout was on first or second death but that option was not on the online application form filed by the advisor and so when we got the policy we never noticed it was not what we intended and have only recently noticed it. In this situation the policy does not benefit either of us as the money will only go to our estate after our deaths.
The second reason for concern is why would they advise a Lifetime insurance when we only wanted a 7 year cover.

Brie

Confused! 

You had a mortgage intended to run from 2009 to 2016.  So presumably it has been paid off in full??  Or was that the term of that mortgage and you got yourself a new mortgage deal in 2016?

If the first and it's paid off then yes perhaps there was an appropriate product picked for you.  Then again you did agree to it and have admitted that you didn't read what you signed up to as you likely would have spotted the mistake at that time.

If the second and you still have a mortgage then I'd suggest it wasn't necessarily the wrong product as you still require the cover. 

dunstonh

The  policy is a Lifetime +/Joint Life/2nd Death (on my wife and myself) taken out to cover a 7 year mortgage.

By lifetime, I assume you mean a whole of life assurance?   (the phrase lifetime can be used to mean something different - such as paying out in the lifetime of the policy)

The first reason for concern is that we wanted the life insurance to be paid out when the first person died (there was an option in the LV brochure to choose whether payout was on first or second death but that option was not on the online application form filed by the advisor and so when we got the policy we never noticed it was not what we intended and have only recently noticed it.

Most life assurance plans have the option of first life or second (or subsequent) lives.  Most life assurance plans have multiple options.    The generic documentation will cover these options but the personalised paperwork will not.

In this situation the policy does not benefit either of us as the money will only go to our estate after our deaths.

Are you sure it is second death?  

It would seem like a strange thing to do with cover required for mortgage repayment on death. 

The second reason for concern is why would they advise a Lifetime insurance when we only wanted a 7 year cover.

Unusual but possible.  Some whole of life plans could actually be quite cheap in the first 10-15 years (the point they get to their first review).  So, if the plan has a term less than the first review point, then it can be used.  It is unconventional but theoretically possible.   It also gives you the choice to continue the life assurance beyond the mortgage term or not.   Again, not that common but some do it.

Whatever the reasons, you would expect to see the reasons why in the statement of demands and needs/advice letter you were given.  What does it say in there as to why second life was selected and why a whole of life assurance was selected?

ppeetteerr

Brie: yes we paid the mortgage off in 2016 when we sold and downsized.

Dunstonh: 1) Lifetime means ".....paying out on your death (LV Paperwork)
                  2) Definately "2nd death" (LV paperwork)
                  3) I spoke to the financial advisers and as the agent who dealt with this has now retired they assumed it was because                             having 2nd death would be required by the mortgage company and possibly make the premiums cheaper.

dunstonh

You have a nailed on complaint on that basis.

You complain to the advice firm.