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Mis Sold Life Insurance Compensation

Did you cancel a whole-of-life insurance policy due to rising costs or reduced cover? We can help you get the premiums paid back.

Make a mis-sold life insurance policy claim with KP Law

Did you buy a ‘whole-of-life’ insurance policy to provide money for your family when you die? Did the policy premiums subsequently soar to a level you could not pay or found uneconomical? Or was the amount of cover significantly reduced? If so, you might have a mis-selling compensation claim. 

In recent years, an increasing number of people have complained about the way whole-of-life policies were sold. 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.  

We help 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.  

If you believe your whole-of-life insurance policy was mis-sold, contact us to find out how we can help. If you are unsure if you have a claim, we can find this out for you.  

Do you have a life insurance mis-selling claim?

You might be the victim of whole-of-life insurance mis-selling if a financial advisor (or insurance provider) convinced you to purchase a life insurance policy on a maximum cover basis and:

If this applies to you, contact us to discuss a potential mis-selling claim.  

We are unable to help if you have already made a claim for the same insurance product with the FSCS or FOS, even if this claim was unsuccessful.  

If you have been a victim of life insurance mis-selling, we can help you make a no-win, no-fee claim for compensation. 

Contact us today for a free, no-obligation assessment of your case. 

What is life insurance mis-selling?

Life insurance helps ensure that the people you love are cared for financially after you die. But, if you bought life insurance cover that does not match your needs or circumstances, your policy could have been mis-sold. Insurance mis-selling happens when a provider or financial advisor sells an insurance product that isn’t right for the customer and/or when the customer isn’t given accurate information on the terms and conditions of the policy. 

Whole-of-life insurance policies have been especially problematic.

Typically more expensive than standard cover, there is no fixed term, so as long as you keep paying your premiums, your loved ones are guaranteed to receive a pay-out when you die (some policies allow you to stop paying premiums but will continue to protect you once you reach a certain age). 

Mis-selling happens when whole-of-life insurance policies are sold for a certain monthly/annual premium and this cost later increases to make the plan unaffordable, or where the life assurance policy fails to provide the cover you were initially led to believe. As cover stops when a policy is cancelled, all the premiums paid are lost as the policy will never pay out. 

If this has happened to you, and you believe you were misadvised on your life insurance plan, you may be eligible to make a no-win, no-fee claim. 

Life Insurance Mis-selling Group Action Claims

Where multiple people have received negligent or fraudulent financial advice from the same professional advisor/company, we can help them to recover their losses collectively. Group actions can be a powerful tool and can have a bigger impact than a single claim. 


Mis Sold Life Insurance FAQS

Here are some of the questions our clients have asked our expert lawyers about making a whole-of-life insurance mis-selling claim.

  • What makes a whole-of-life insurance policy mis-sold?

    Common examples 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). 


  • 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 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.  

  • I think my financial advisor was negligent. Do I have a claim?

    To make a professional negligence claim, you need to demonstrate that you were owed a duty of care, that the professional involved breached this duty, and that this breach caused you to suffer a loss. This can be hard to prove, as a professional is not expected to be right 100% of the time. 

    To win your case, you must show that another experienced professional in the same field would have given different advice, or that the professional failed to follow recognised good practice. We have a history of effectively handling these types of cases and can help you make a successful claim. 

  • 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 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 we offer no-win, no-fee funding arrangements, you benefit from expert legal support without worrying about costs. 

  • Can I make a mis-selling claim?

    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?

    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. We will conduct the claim for you under a no-win, no-fee agreement. 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. 

Cases we handle at KP Law

Our Investment Fraud & Mis-selling lawyers deal with a wide range of life insurance mis-selling cases every day. Here are just some examples of the type of cases we can help with 

Ray’s* life insurance mis-selling case

Ten years ago, Ray purchased a whole-of-life insurance policy after speaking to the provider directly. However, the terms and conditions were not fully explained to him, and he did not realise that the level of cover could change. Ray cancelled the policy as the provider reduced the cover to an unacceptable level. He has lost the premiums he paid over the last ten years. This amounts to thousands of pounds. We are helping Ray claim compensation as he was not given adequate financial advice.  

Nadine’s* life insurance mis-selling case

Nadine sought a UK-regulated financial adviser to ensure she received high-quality financial advice when looking for a whole-of-life insurance policy. The UK-regulated advisor recommended a product that gave him a fee for each policy purchased. Nadine’s premiums have tripled, and she had to cancel the policy as she could no longer afford it. We are helping her to claim compensation for mis-selling and professional negligence.  

Victor’s* life insurance mis-selling case

Victor took out a whole-of-life insurance policy in 2010. The premiums have since doubled, and while he can afford to pay them, Victor cancelled the policy as it was no longer competitive. His financial adviser led Victor to believe that the cost agreed when buying his policy was fixed for life. We believe that Victor’s financial advisor was negligent, and we are helping him claim back the money he has spent on the policy. 

*Names have been changed to protect client confidentiality. 

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