Critical illness cover is designed to pay out a lump sum if someone is diagnosed with a serious illness, such as cancer, heart attack or stroke. These policies can provide vital financial support during difficult times but are not without criticism and regulatory concern.
The Financial Conduct Authority (FCA), the financial industry’s regulatory body, is conducting a review of critical illness cover and the broader protection insurance market, following concerns that these policies were not offering good value to customers.
The FCA is reviewing the protection insurance market, including critical illness cover.
The areas being examined include:
Below are some examples to illustrate what insurance mis-selling may look like:
If you have paid into a critical illness insurance policy and are now questioning whether it was right for you, you are not alone and might be entitled to compensation.
TLW Solicitors act on a ‘no win-no fee’ basis and specialise in consumer financial claims and refunds. Get in touch to see if you may be eligible to make a claim.
or call us on 0191 293 1500
Pure protection insurance policies are intended to help individuals and their families during difficult life events. For example, if the policyholder dies or is diagnosed with a serious illness, a life insurance or critical illness policy will pay a lump sum. If the policyholder is unable to work due to ill health, income protection or mortgage protection would pay out a regular amount to cover the monthly bills or mortgage payments.
Critical illness insurance mis-selling can happen when the policy sold doesn’t match the customer’s needs or circumstances.
Examples of critical illness mis-selling include:
Consumers may be asked to pay more for their insurance policy than is necessary to purchase their critical illness cover. The extra (‘loaded’) premium boosts the broker or intermediary’s commission and funds their ongoing training.
It is believed that loaded fees could be as high as 15 to 30 per cent of a monthly premium. This practice is unfair, and the FCA has raised concerns that some intermediaries prefer to maximise their commissions rather than meet a customer’s needs or offer good value.
The circumstances of each case vary, but our overall refund claims procedure is as follows:
Step 1 – You will provide us with the necessary details to determine if you have a valid complaint regarding critical illness insurance mis-selling by the person who sold you the policy, whether that be the insurers themselves, a financial adviser, mortgage broker, etc. If, after reviewing this information, we are satisfied to proceed with your case, we will securely send you our online agreement via e-sign for your review and return.
Step 2 – Using the information provided and our technical knowledge and expertise in these cases, our team will draft the complaint and send it to the party who sold you the policy or policies. We will assess whether it is necessary to obtain your file or other details, and if so, we will submit a data subject access request on your behalf.
Step 3 – Once we receive a response from who sold you the policy, we will advise you on the next steps, including whether any offer made is reasonable and should be accepted. If we advise against accepting the offer, we will explain our reasons. Where appropriate, we will then prepare your case for submission to the Financial Ombudsman Service (FOS), the independent, government backed body that settles complaints between consumers and FCA regulated businesses that provide financial services.
To start your claim, we’ll need the following information:
If you still have your policy documents, that’s helpful, but not essential. We can often gather the necessary evidence from your insurance provider.
Yes. You may still be entitled to compensation for the time you paid into the policy, especially if it was unsuitable, too expensive, or sold under pressure.
We provide a free, no-obligation assessment of your case and will decide whether to pursue your claim. If we accept your case, we operate on a ‘no win, no fee’ basis, meaning you won’t pay anything if your claim is unsuccessful. If we succeed, the fee you pay will depend on the amount of compensation you receive.
Our costs are governed by the Solicitors Regulation Authority. More details can be provided before you decide if you wish to proceed with a claim.
If your claim is rejected by whoever sold you the policy/policies, we will investigate and let you know if there are grounds to escalate your complaint to FOS. Even if your complaint is rejected at the first stage of the FOS process, we may still consider appealing that decision to the final stage of the Ombudsman process.
The time it takes to make a compensation claim can vary depending on your specific circumstances and several factors outside our control, but it may take several months. As your case develops, we will keep you informed about the expected timescales.
Our robust case management systems ensure we regularly update you on your claim. You will be allocated a dedicated case handler who you can contact with any queries, issues, concerns, or clarification about the claims process. They will always aim to respond fully, and in jargon-free, plain English.
At TLW Solicitors, we have many years of experience in handling financial consumer claims, helping clients in recovering money and redress for various mis-sold financial products.
We work on a ‘no-win, no-fee’ basis and provide a free, confidential, and no-obligation initial assessment of your case. If we decide that you are eligible to make a claim, we will handle it from start to finish, giving you peace of mind and saving you time.
If you are concerned that you or a loved one was mis-sold critical illness cover or another pure protection insurance policy, please call us on 0191 293 1500 or complete one of the forms below.
It is important to get advice as soon as possible, as strict time limits can apply.
Minimum claim values apply.
Meet Sarah, who heads up our experienced Mis sold Life Insurance Claims team.
Sarah and her colleagues are on hand to help with your claim.
