critical illness cover

littlelady44

When I had finished paying for my mortgage , I went to my bank to cancel my PPI cover as I knew I would no longer need it. A member of staff advised to switch my payments to a critical illness claim policy. I was told that if I did not claim for an illness during the duration of the policy I would receive a lump payment at the end of the policy (12 years). After receiving a letter last month to notify me that my monthly payment was about to increase , I decided to find out when my policy would terminate and how much my cash settlement would be. I was told by a Scottish Widows staff that my policy would terminate in January 2026 but there would be NO cash pay out if I hadn't made an illness claim. When I explained that I have been of the understanding that I would receive such a cash payout , the lady said she could send me a mis sold form. Please could you suggest what steps I need to take . I certainly would not have taken this policy just on the chance of getting sick and regarded it as a type of nest egg . Many thanks.

MorningcoffeeIV

You'll need to send your evidence along with your complaint, or point them to where the cash sun is specified in the policy document.

However, a cash payment for not claiming would be very unusual.

MalMonroe

Hi, it's always a good idea to read your policy document to see exactly what you are and are not entitled to, rather than take the word of an insurance company employee. (They should know what they're talking about but sometimes they don't.)

However, given that that ship has sailed, it does seem from what you say to be a clear case of mis-selling and you've been paying the premiums for 9 years now in the belief that you were entitled to a lump sum at the end of the 12 years. You could have been saving that money in a high interest earning savings account had you been given all the correct facts at the outset.

If I were you I'd complete and return the mis-sold form that the insurance company person said she'd send. 

If Scottish Widows turn awkward, you can complain to the Insurance Ombudsman -

https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance

It's a free service. But I would wait to see what Scottish Widows' response is when they receive the mis-selling complaint form.

And citizens advice may also have some ideas -

Link - https://www.citizensadvice.org.uk/

Good luck with it all.

littlelady44

Thank you so much.