If you purchased a whole-of-life insurance policy and your advisor did not make you aware that the premiums may significantly increase or the level of cover drastically reduce, you may be a victim of mis-selling. And, if you had to cancel the policy because of such changes, you could be due compensation for the payments you have already made.
At KP Law, our experienced Investment Fraud & Mis-selling team is helping people in England & Wales claim back what they have paid into these policies if they are a victim of whole-of-life insurance mis-selling. Here are some of the questions our clients have asked our expert lawyers about making a whole-of-life insurance mis-selling claim.
What is whole-of-life insurance?
Whole-of-life insurance policies pay a lump sum to the policyholder’s family or beneficiaries when they die. Unlike fixed-term insurance, with a whole-of-life policy, the cover lasts for the policyholder’s lifetime.
What makes a whole-of-life insurance policy mis-sold?
Common examples of whole-of-life insurance mis-selling include where someone has:
- Seen their premiums increase to a level that they were unable to pay
- Seen their premiums increase to a level which made them uneconomical
- Had the amount of cover provided significantly reduced
- Had to cancel a policy because of such changes
- Not been made aware that these changes could happen (or not had them fully explained).
Once a policyholder cancels the insurance, they lose all the premiums paid to date, and no pay out will be made when they die. This could amount to a loss of thousands of pounds.
I cancelled my whole-of-life insurance policy, and the provider or adviser has gone out of business. Can I make a claim?
Yes, if a financial advisor or insurance provider advised you to invest in an unsuitable insurance scheme and the provider or adviser has since gone out of business, you may have a claim. The Financial Services Compensation Scheme (FSCS) protects consumers when financial firms fail. If a UK-regulated adviser has given bad advice concerning an insurance product, and the provider or advisor has since gone out of business, the FSCS may pay compensation up to £85,000.
What are the potential consequences of life insurance mis-selling?
As a result of whole-of-life insurance mis-selling, victims might have:
- Lost thousands of pounds.
- Been hit with high fees and charges.
- Been left uninsured, despite having paid into the premium for years.
- Suffered emotional stress and harm.
Where does the compensation for whole-of-life insurance mis-selling come from?
There are two main funds available to help victims of life insurance mis-selling:
- If a financial advisor/provider advised you to invest in an unsuitable scheme and the provider or adviser has since gone out of business, you may have a claim with the Financial Services Compensation Scheme (FSCS).
- If a financial advisor/provider advised you to invest in an unsuitable scheme that has not gone out of business, you may be eligible for compensation via the Financial Ombudsman Service (FOS).
We can help you to make a successful claim to the relevant fund.
Do I need a lawyer to claim compensation for a mis-sold life insurance policy?
You can make a mis-sold life insurance claim without a lawyer. But while a DIY mis-selling claim could save you solicitor’s fees, in the end, even if you win, you might walk away with less compensation. This is often due to a lack of understanding over the law/procedures, which can put individuals at a disadvantage when up against savvy (and sometimes aggressive) defence lawyers. And, of course, if you lose your case, you will likely have to pay the other side’s costs. Because Keller Postman UK offers no-win, no-fee funding arrangements, you benefit from expert legal support without worrying about costs.
How do I start a mis-sold insurance claim with KP Law?
Contact us to discuss your case. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis.
How much will I have to pay if I make a claim with KP Law?
We are running this case on a no-win, no-fee basis. So, you will only have to pay anything if you win. You will not have to pay anything upfront. Any payment would only come out of the money that we recover on your behalf. If you win, our fees will be deducted from your damages.
How much compensation could I get?
Each case is different, but many of those affected by life insurance policy mis-selling could be owed many thousands of pounds.
CONTACT US IN CONFIDENCE TO DISCUSS YOUR CASE.
