Whole-of-life insurance policies pay a lump sum to your (or the policyholder’s) family or beneficiaries when you die. Unlike fixed-term insurance policies, with whole-of-life, as long as you keep paying your premium, the cover will last for your lifetime. Some policies even allow you to stop paying premiums but will continue to protect you once you reach a certain age.
Typically more expensive than standard cover, many people have opted for whole-of-life insurance to remove the risk of their beneficiaries not receiving an insurance pay out if the period covered runs out. However, in recent years, an increasing number of people have complained about how they were sold whole-of-life insurance policies, as many believe the terms of the cover were not fully explained to them.
How were whole-of-life insurance policies mis-sold?
Mis-selling happened when whole-of-life insurance policies were sold for a certain monthly/annual premium, and this cost later increased to make the plan unaffordable. Or where the life assurance policy failed to provide the level of cover the policyholder was initially led to believe. As a result of these changes, the policyholder had no choice but to cancel the insurance. But, as cover stops when you cancel a policy, all the premiums paid were lost as the insurance would never pay out.
Because 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.
People who bought these policies were often not told that the premiums could soar, or that the provider could significantly reduce the amount of cover available. But financial advisors and policy providers have a legal duty to make sure people are fully informed about any financial products they recommend/sell. In not fully explaining the terms and conditions of the cover, we believe that these advisers/providers were negligent.
Because the insurance should not have been sold in the first place (as it was unsuitable for the people who bought it), we are pursuing mis-sold whole-of-life insurance claims to get back the money our clients have already paid into these policies.
Can you make a whole-of-life insurance mis-selling claim?
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.
KP Law helps people in England & Wales claim back what they are due following financial mis-selling. We can even help you get your money back if the provider or adviser has gone out of business.
Claiming with us is straightforward. It is free to sign up, and we act on a no-win, no-fee basis.
We cannot help if you have already made a claim for the same insurance product with the FSCS or FOS, even if this claim was unsuccessful.
