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Missold life policy

  • 30-03-2012 11:36pm
    #1
    Chipboard
    Closed Accounts Posts: 428 ✭✭


    My aunt and uncle asked me to look at a payment protection policy for them recently as they had just received a letter seeking an increased premium.

    It turned out that they took this out 19 years ago as they were told by a mortgage broker that they needed it to get a mortgage. It consists of just under 100k life cover for each if them, serious illness of 60k for one of them and 50 Euro per day hospital cash for one of them I.E. no payment protection even though it is called payment protection.in all the letters from the life company. They have paid over 30,000 into it in the 19 years and can't afford to maintain it as the premia are nearly 300 per month and they have now retired.

    I have no doubt that they were missold this as it was presented to them as a requirement to get the mortgage. They were never told that they could have taken straightforward reducing life cover. Furthermore they don't need hospital cash as they are in vhi.

    I was told today that they can't complain as there is a 6 year statute of limitations on these matters. It seems ridiculous to me that this could be true when the product is long term and they are still paying into it.

    I would appreciate any constructive comments.


Comments

  • #2
    nlgbbbblth
    Closed Accounts Posts: 5,668 ✭✭✭nlgbbbblth


    was the mortgage on their family home or an investment property?


  • #3
    broker2008
    Registered Users, Registered Users 2 Posts: 750 ✭✭✭broker2008


    It sounds as if it is a unit linked whole of life policy not payment protection. There may be an element of payment protection for the premium that it is being paid and this wouldn't cost too much. All the benefits within the policy have a cost based on each person's benefits, their age, their gender, their smoking habits. The policy could be coming up to their 20 year anniversary and/or 70th birthday of one of them. As it is unit linked, the cost associated with all the benefits has increased, as it does each year, Eventually the cost will be prohibitive and there will be little or no money left in the fund. Just because someone has health insurance doesn't mean that they don't need hospital cash from a life policy (or HSF). One should also take into consideration that if either(or both) had had a serious illness and/or died, the benefits would have paid out. Which company is it with, what is the actual name of the policy, is the policy assigned now (or ever) to a bank or building society ?


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