Having a life insurance policy in place, to financially protect your loved ones in the event of your death, can give all parties a sense of reassurance that things will be a little more manageable should the worst happen.
However, that desire to protect loved ones has sadly been exploited by some less than reputable brokers and insurers in the past, which has led to a growing number of financial product mis-selling claims. Many of which have involved life insurance policies set up at the same time as taking out a new mortgage.
Could this apply to you?
There are three main categories under which a life insurance plan may be considered as mis-sold :
- Being pressured into buying one by using hard-sales techniques and falsely claiming that a plan must be taken out on that same day to achieve the premium quoted.
- Being sold an unsuitable policy. This involves only being given one choice of the type of insurance on offer, not being given all the relevant facts/exemptions/commission rates of the plan, or being encouraged to take out more life cover than you really need or wanted.
- Being told that your mortgage offer is wholly dependent on taking out a life cover plan to match the amount and term of the loan, when they was no legal basis for this condition of sale.
If any of these scenarios sound familiar, then you may have a valid case to make a claim.
In this particular article, we concentrate on the last category shown above, namely a mis-sold life insurance policy taken out in conjunction with a mortgage.
Why Were Life Insurance Policies Mis-sold?
It has been discovered that large numbers of life insurance policies may have been mis-sold to mortgage clients, by providers falsely claiming that they must have life cover as a condition of accepting their mortgage application.
Whilst having a policy in place to pay off the mortgage debt if one of the policyholders dies during the mortgage term is a reasonable and often wise decision, it is not and was never compulsory. And yet it appears that many clients were directly told, or strongly implied, that they must have life cover to run alongside their mortgage.
Worse than this, it has also become apparent that some salespeople sold the much more expensive ‘whole of life’ cover in these circumstances, rather than the much cheaper and perfectly adequate ‘term’ assurance.
Sadly, there have been a number of mis-selling scandals to hit the Financial Services Industry in the last decade or so, and mis-sold life insurance plans are yet another example of where some customers have fallen victim to untrustworthy or unscrupulous broker sales practices.
Commission rates and broker fees often vary, dependent on the type of insurance sold, so there is a possibility that a salesperson may have had their own financial interests at heart, rather than the client’s.
Of course, we are not suggesting that all policies have been mis-sold, far from it in fact, but there is evidence that mis-selling has certainly happened in this area, so it may be worth checking if you have been affected.
Claims Compass can arrange a no-obligation call back from an experienced claims advisor, to discuss your specific case and determine if you may have a valid claim for a mis-sold life insurance plan. They can then handle the claim for you if you wish, saving you time and worry, on a no-win no-fee basis.
The circumstances under which you bought your policy may fall into the category of mis-selling and, if so, we can help you claim the compensation you deserve.
The public have a right to expect professional and unbiased financial advice when seeking to start a policy, and if you were not given all the options available or were rushed into making a poor financial decision, you are entitled to hold that insurance provider to account.
Let us help you.
If you would like further information, please click on the link to arrange a call back, or take a look at our other article which lists the life insurance mis-selling tactics in more detail.
Mis-Sold Life Insurance FAQ:
Can I Claim For A Mis-sold Mortgage?
Yes you can. If you can prove that the mortgage company/adviser mis-sold your mortgage to you, then you are entitled to make a claim for compensation.
There are several scenarios which could be considered a form of financial product mis-selling and our online guides are full of useful and helpful information ready to get you started. We can also arrange a no-obligation call back from an experienced claims advisor who will be able to discuss your case further, and handle the claims process for you, if you wish.
I Think My Mortgage Was Also Mis-sold, What Can I Do?
If you believe you have been the victim of financial mis-selling, it is important to know if and how you can make a claim. Mis-sold mortgages have affected large numbers of people and Claims Compass have put together a comprehensive guide of what to do if this applies to you.
Please take a look here for more information on mis-sold mortgages.