In November 2019 Mrs I contacted It IS Your Money about her Free Standing AVC. During the conversation with out team we established that not only could we help with this complaint but also with her husband’s Reviewable Whole of Life policy. In the early 90’s Mr I was advised by Cornhill Life (now Phoenix Life) to take out a Reviewable Whole of Life policy to repay his mortgage in the unfortunate event of his death. Our experienced team were quick to note that this may not have been the most suitable way to cover their mortgage and proceeded to send out our claims form to the clients.
After sending our initial tailored complaint to Phoenix Life, highlighting the fact we believed Mr I was sold an unsuitable product for his need, we were asked to complete a further assessment of the client’s circumstances at the point of sale.
Our experienced staff helped Mr I with this and submitted the required information to the insurer. As part of this assessment, It IS Your Money underlined the fact that Mr I was not aware that the policy was subject to any investment risk, and therefore his premiums were reviewable. We also highlighted that the reason for taking the policy was to cover the cost of his mortgage and that a Whole of Life policy was not the most suitable way of doing this. Rather than taking out a term assurance which would match the term of the mortgage, Mr I ended up with Whole of Life policy which would run indefinitely.
After receiving this additional information, in January 2020 Phoenix Life agreed that Mr I’s Whole of Life policy was not the most suitable policy for his needs. Phoenix offered the client a full refund of premiums paid on the policy totalling £21,796.48 and paid 8% interested on top of this, taking the total compensation payment to £37,128.17.
The whole process took 3 months, and Mr I was elated to find out we were able claim £37,128.17 in compensation. Whole of Life policies often get confused with other types of life assurance, however the key indicators are:
1. The life assurance often has no end date.
2. The life assurance premiums are reviewable and often increase through-out the term.
3. If you do not increase your premiums the amount of life assurance begins to diminish.
If you believe you have been mis-sold you Whole of Life policy click the link below to start your claim!