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mis-sold life insurance policy help / advice

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just after some advice. Mum has just noticed she's been paying for 2 life insurance policies with Friends Life since 2010. long story short, she set up a £81k life insurance policy via mortgage … Read More
BobIzYaUncle Avatar
1m, 1w agoPosted 1 month, 1 week ago
just after some advice.

Mum has just noticed she's been paying for 2 life insurance policies with Friends Life since 2010.

long story short, she set up a £81k life insurance policy via mortgage in 2004 for £38pm. in 2010 she was contacted by friends life and offered £150k level cover for £50pm to which she accepted. however the original 2004 policy has never been cancelled and she's paying for both since 2010.

she is very old-school and rarely checks bank statements and account usually runs in credit but this month she has been charged for going overdrawn. so now has investigated why and found the above to be the reasoning.

she has contacted friends life and they are going to look into it and hopefully find the original phone call but I'm doubting this as it's over 7 years ago.

Is there anything we can do to get money back from either of the policies?

thanks in advance
BobIzYaUncle Avatar
1m, 1w agoPosted 1 month, 1 week ago
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#1
Depends... She would have to follow the route that she was told the other was cancelled otherwise/however I seriously doubt you have a leg to stand on for not noticing that for 7 years.

Does that also mean she has never looked at a monthly statement in this period and that all kinds of fraud could have been going on?

Edited By: stevemack on May 17, 2017 16:13
#2
BobIzYaUncle

in 2010 she was contacted by friends life and offered £150k level cover for £50pm to which she accepted.

she is very old-school and rarely checks bank statements

She didn't check her statements for over 7 years?! oO
#3
From what you have said she must have believed that the £150k policy replaced the original one but it looks like this was a different policy altogether which was why she has been paying for the two. I am not sure she will be able to get her money back in that case but can obviously cancel one or both. Bear in mind, if she had died both would have paid out so the insurance company would argue that she had the "benefit" of that cover.

Edited By: tallpete33 on May 17, 2017 16:17
#4
as I've said, she's very old school and has never been worried by fraud. she has never done telephone or online banking. will only ever go into the bank. I know its difficult to understand In this day and age but genuinely not noticed this till now. she was told the later policy would cancel the old but this has never happened. I know you can have multiple policies but she has no need for 2 at combined value over £230k!

I guess we'll just have to wait and see what Friends life come back with if they have the original phone call
#5
BobIzYaUncle
as I've said, she's very old school and has never been worried by fraud. she has never done telephone or online banking. will only ever go into the bank. I know its difficult to understand In this day and age but genuinely not noticed this till now. she was told the later policy would cancel the old but this has never happened. I know you can have multiple policies but she has no need for 2 at combined value over £230k!
I guess we'll just have to wait and see what Friends life come back with if they have the original phone call

Fingers crossed but I think you will just have to cancel one or t'other. My mum doesn't do internet banking either but I'm named on her current account so I can keep an eye on it from my phone. The amount she spends in Sainsburys...Jeez !! oO:D
#6
You could try contacting the FOS, but I wouldn't get your hopes up. I'd probably wait to see what Friends Life come back with first.

http://www.financial-ombudsman.org.uk/
#7
Throwing your inheritance away? Why would you :p

In all seriousness i would check whether one could be frozen so you stop paying but still benefit from some of the monies even though it will degrade over time.
#8
So she's been running two separate policies art the same time...a lot of people do - I do. I don't see that she had a leg to stand on, sorry. If she's misunderstood they will simply say"that's why you always get advised to take independent financial advice". It's only goodwill that will get you a refund methinks. Sorry.
#9
bigweapon07
Throwing your inheritance away? Why would you :p

In all seriousness i would check whether one could be frozen so you stop paying but still benefit from some of the monies even though it will degrade over time.


Are they with profits or just insurance policies with no value unless you die? At the end of the day if the policyholder had died they wouldn't have refused the cash so I exoect theyll get nowhere trying to claim the cash back.
#10
To be fair if those payouts still stand and your mum is over 60 say. Its very good deal as now you cant get over 15k for £50p/m for over 60s. So i would stock with them or if you need the cash just drop the £38p/m cover if you dont need it. But definately keep the bigger one at a minimum.
#11
FOS will give you your money back. you need to go through your life insurance companies complaints process first but start the letter with saying.... before I go to the FOS I wanted to give you the opportunity to put this right first. they will bend over backwards.
#12
The only possibility I can think of is asking to see the original paperwork ( there must have been some ) which your mum should have a copy of, but Friends Life should be able to provide a copy of although they may charge you for it. If you are lucky it might state that the original policy was due to be cancelled when the new one started but it is a long shot. Since your mum has had the benefit of cover and hasn't checked her bank statements for 7 years and also presumably ignored any documents sent from Friends Life over the same period I can't see the case for a refund. Also it's good financial sense to cancel any direct debits yourself with your bank and not rely on the companies to stop claiming. Maybe your mum would benefit from you being added onto her account as a third party to help her out , as mentioned above she could be vunerable to fraud if she isn't keeping an eye on things.
#13
bigweapon07
Throwing your inheritance away? Why would you :p
In all seriousness i would check whether one could be frozen so you stop paying but still benefit from some of the monies even though it will degrade over time.

No point in freezing a simple life insurance policy as there's no value to it unless you claim.
#14
you_gotta_be_kidding
FOS will give you your money back. you need to go through your life insurance companies complaints process first but start the letter with saying.... before I go to the FOS I wanted to give you the opportunity to put this right first. they will bend over backwards.

There is no guarantee the FO will instruct FL to return premiums. The FO has no money to give back.
#15
They should still have the documentation for the 2010 deal (i'm sure thay have to hold stuff for 7 years).

Question I would ask is why she needed (or was recommended) £150K of cover. There is a potential mis-selling thing here.
You really need to get all the docs together and see exactly what shes been paying for (is it straight life insurance or is there an 'investment' component?)
#16
you_gotta_be_kidding
FOS will give you your money back. you need to go through your life insurance companies complaints process first but start the letter with saying.... before I go to the FOS I wanted to give you the opportunity to put this right first. they will bend over backwards.
What a load of deluded rubbish. The financial ombudsman have no money to give anyone. They can make a decision based on whether the correct process has been followed. The company then is bound by their decision. In this case it would be a case of if there is evidence that the second policy replaced the first . If not, the policy holder has had the benefit of both for all those years. If so, the company should have not claimed both. I'd have a look at all the original policy documents because they should clarify this. From the info you have given, I would think it would have been up to your mum to cancel the first policy but I hope for your sake there can be some compromise
#17
psychobitchfromhell
you_gotta_be_kidding
FOS will give you your money back. you need to go through your life insurance companies complaints process first but start the letter with saying.... before I go to the FOS I wanted to give you the opportunity to put this right first. they will bend over backwards.
What a load of deluded rubbish. The financial ombudsman have no money to give anyone. They can make a decision based on whether the correct process has been followed. The company then is bound by their decision. In this case it would be a case of if there is evidence that the second policy replaced the first . If not, the policy holder has had the benefit of both for all those years. If so, the company should have not claimed both. I'd have a look at all the original policy documents because they should clarify this. From the info you have given, I would think it would have been up to your mum to cancel the first policy but I hope for your sake there can be some compromise


i wasn't saying the FOS themselves will give it back, I meant they will instruct the insurance provider to give it back. I have worked in the financial sector for 20+ years. I've seen this dozens of times, especially with people having two insurance policies. everytime the policy holder wins. Also for anyone saying they might not have the records if they didn't get would lose immediately on that alone. they are required to keep all records for the life of the policy.
#18
you_gotta_be_kidding
psychobitchfromhell
you_gotta_be_kidding
FOS will give you your money back. you need to go through your life insurance companies complaints process first but start the letter with saying.... before I go to the FOS I wanted to give you the opportunity to put this right first. they will bend over backwards.
What a load of deluded rubbish. The financial ombudsman have no money to give anyone. They can make a decision based on whether the correct process has been followed. The company then is bound by their decision. In this case it would be a case of if there is evidence that the second policy replaced the first . If not, the policy holder has had the benefit of both for all those years. If so, the company should have not claimed both. I'd have a look at all the original policy documents because they should clarify this. From the info you have given, I would think it would have been up to your mum to cancel the first policy but I hope for your sake there can be some compromise
i wasn't saying the FOS themselves will give it back, I meant they will instruct the insurance provider to give it back. I have worked in the financial sector for 20+ years. I've seen this dozens of times, especially with people having two insurance policies. everytime the policy holder wins. Also for anyone saying they might not have the records if they didn't get would lose immediately on that alone. they are required to keep all records for the life of the policy.
well you did say "fos will give you your money back"

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