In 1994 my husband and myself took out a life assurance and have been paying monthly £49.50 since then. He died last year (aged 82) The cover was for £75,646. Last week I received a letter that the providers have failed to carry out regular reviews. I now have the choice of either paying £256.93 a month (with annual increases) and keeping the cover sum; continuing to pay £49.50 (growing) and reducing the cover to £13,159; or stop paying and receive nothing. My questions: (1) Is this a reasonable proposal? (2) Should I ask for a schedule of what the regular reviews would have produced in order to judge at which point I would have stopped paying, and request reimbursement of later payments? (3) Is there anything else you would advise me to consider / do? Thank you so much for any advice. Prof. Gisela Shaw
System of Law: England-and-Wales
Nothing as yet as the letter only arrived just before the weekend.
Hi,Thank you for your question and welcome to Just Answer.I am sorry for your loss.Have the providers admitted to you in writing that they are in the wrong? Were the regular reviews required by your policy? Have they offered to compensate you?I look forward to hearing from you.Kind regardsAJ
Yes, the providers admit mistake. The policy does refer to regular reviews. In terms of compensation they offer to waive the part of the costs they have been unable to take from my policy. I have no idea how much that amounts to. Would love to get things spelt out in greater detail by them if that's reasoable.Thanks.GS
Hi,I think you are perfectly entitled to see what these a) what these costs are and b) what the proposed increases would have been.It would be impossible to know what your loss is until they have provided you with this breakdown. As you have quite rightly pointed out you will only know when you would have stopped paying the premium if you had known what the monthly increase on the premium would have been. Therefore until they give you further information you cannot calculate your loss and therefore what level of compensation you would be entitled to.Under limitation rules you probably would not be able to claim back any premiums paid more than 6 years ago.Have you considered making a complaint to the Financial Ombudsman for the negligent management of your policy?Is there a reason why they have mismanaged your policy? Was it because the policy was sold or was the insurer/underwriter sold?I look forward to hearing from you.Kind regardsAJ
Thank you for your answer re breakdown.Financial Ombudsman: Could I request more time before deciding - they want my decisive answer by 21 May.And, yes, the insurer appears to have been absorbed by another institution.GS
Hi,Thank you.I thought it was the case that the insurer was taken over- that is what normally happens when there is a takeover policies are lost or forgotten about. Note how they are still happy to take your money though!I would suggest you write to them and tell them that you are taking professional advice and you would like to reserve your position until you have had the benefit of that advice. I would give them a date by which time you will feel comfortable making a decision, do not leave them hanging indefinitely.In your letter to them mention the following:1) Highlight that they have admitted wrong doing 2) invite them to make an offer to you for compensation so the ball is back in their court and 3) tell them as they are in a regulated industry and you are a consumer you have the legal right to be treated fairly - therefore if they are not open and forthcoming in their proposals to you, you will make a complaint to the Financial Ombudsman.A letter in this tone will give you some time to think and also make them aware that this is not just going to go away unless they treat you fairly.Kind regardsAJ
LLB, LPC, DELF
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