Unwanted Income protection insurance

simbadio1984

Hi everyone, I took out some income protection insurance back in 2013 when I became employed by a company that didn’t provide sick pay. 

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this. Going through my bank statement I notice a payment coming out that I did not recognise so did some research into it and discovered payments were still coming out for this policy. 

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?
Its only been confirmed to me today that the policy is live so I’m going to cancel it/direct debit asap.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway. Thanks 

dunstonh

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this.

After 6 years, it's 99% likely you didn't.  
Timescale is an important consideration.
Where there is no evidence, if you raised the non-cancellation within months or even up to a year or two, then they may consider refunding. But at 6 years, you have no credibility under a balance of probability decision.

That is over 72 bank statements you have had without raising it as an issue and you didn't cancel the direct debit either.    

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

What about the bank statements?   

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?

You can ask but as I mentioned above, your argument in your favour isn't strong.    You would need the provider to be extraordinarily generous and its probably unlikely as they have paid the original seller commission on each payment you have made and you have had cover, whether you used it or not.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway.

Not a valid argument as you had a bank statement every month confirming it was still running. 

DullGreyGuy

simbadio1984 said:

Hi everyone, I took out some income protection insurance back in 2013 when I became employed by a company that didn’t provide sick pay. 

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this. Going through my bank statement I notice a payment coming out that I did not recognise so did some research into it and discovered payments were still coming out for this policy. 

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?
Its only been confirmed to me today that the policy is live so I’m going to cancel it/direct debit asap.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway. Thanks 

What sort of "income protection" was it? ASU/PPI or PHI?

Most people have insurance that they will never make a claim on, or at least that is the hope when they buy it. 

I would guess its fairly likely you bought an ASU policy which would mean its an annual policy with an annual renewal at which point you get new paperwork each years stating what the new premiums are going to be and letting you know it will auto-renew if they dont hear from you otherwise. Whilst you moved in 2017 that was still a fair amount of paperwork in 2014->2017 that you'd have received but somehow not clocked it meant you had an in force policy still.

If it was PHI then your argument about post 2019 is very weak, the best sick pay policy I've ever worked under was 6 months full pay, 6 months half pay. Full fat PHI however pays out until your retirement date, the average claim is 7 YEARS, not the sort of 1 year under sick pay. Whilst thats the average there are people who've received 40 years of payout. Unless employment comes with a strong group PHI you are still heavily exposed to major illnesses and there is very much an argument that PHI is valid to hold and could be claimed on (you'd sensibly just change the deferment period to 1 year to lower the premiums)

marcia_

dunstonh said:

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this.

After 6 years, it's 99% likely you didn't.  
Timescale is an important consideration.
Where there is no evidence, if you raised the non-cancellation within months or even up to a year or two, then they may consider refunding. But at 6 years, you have no credibility under a balance of probability decision.

That is over 72 bank statements you have had without raising it as an issue and you didn't cancel the direct debit either.    

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

What about the bank statements?   

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?

You can ask but as I mentioned above, your argument in your favour isn't strong.    You would need the provider to be extraordinarily generous and its probably unlikely as they have paid the original seller commission on each payment you have made and you have had cover, whether you used it or not.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway.

Not a valid argument as you had a bank statement every month confirming it was still running. 

 Who receives actual bank statements anymore certainly not me.

DullGreyGuy

marcia_ said:

dunstonh said:

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this.

After 6 years, it's 99% likely you didn't.  
Timescale is an important consideration.
Where there is no evidence, if you raised the non-cancellation within months or even up to a year or two, then they may consider refunding. But at 6 years, you have no credibility under a balance of probability decision.

That is over 72 bank statements you have had without raising it as an issue and you didn't cancel the direct debit either.    

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

What about the bank statements?   

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?

You can ask but as I mentioned above, your argument in your favour isn't strong.    You would need the provider to be extraordinarily generous and its probably unlikely as they have paid the original seller commission on each payment you have made and you have had cover, whether you used it or not.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway.

Not a valid argument as you had a bank statement every month confirming it was still running. 

 Who receives actual bank statements anymore certainly not me.

Everyone? I mean they dont turn up as a paper thing through the door anymore but get a monthly alert and/or email that the statement is now available to read online/in the app. 

Just because they are now digital doesnt mean that you shouldn't be checking them

sheramber

marcia_ said:

dunstonh said:

In 2019 I moved to a company that provided full sick pay and benefits so the policy was no longer needed. I’m 99% sure I called to cancel the policy but being 6 years later I can’t prove this.

After 6 years, it's 99% likely you didn't.  
Timescale is an important consideration.
Where there is no evidence, if you raised the non-cancellation within months or even up to a year or two, then they may consider refunding. But at 6 years, you have no credibility under a balance of probability decision.

That is over 72 bank statements you have had without raising it as an issue and you didn't cancel the direct debit either.    

What didn’t help was the fact I moved house in 2017 so haven’t been getting any paperwork through to show the policy was still running. 

What about the bank statements?   

I hold my hand up that it has taken me far too long to notice this but is there anyway of claiming my premiums back? Policy void in any way?

You can ask but as I mentioned above, your argument in your favour isn't strong.    You would need the provider to be extraordinarily generous and its probably unlikely as they have paid the original seller commission on each payment you have made and you have had cover, whether you used it or not.

The fact that I didn’t even know it was running means I would have never made a claim after June 2019 anyway.

Not a valid argument as you had a bank statement every month confirming it was still running. 

 Who receives actual bank statements anymore certainly not me.

My bank advises me when  a statement is produced each month.  As I have opted for paperless  it is my responsibility to check them. 

dunstonh

Who receives actual bank statements anymore certainly not me.

Everybody. It is a regulatory requirement.  (BCOBS 4.2).   

However, with online access, many people don't reconcile from the statement any more but from online access.    
Not reconciling your bank account in 6 years is very bad financial management.