The protection insurance market provides policies to help individuals, couples or families during challenging situations like job loss, severe illness, injury or death. These policies can offer peace of mind and financial security by providing a lump sum or regular payments to cover mortgages, rents, and household expenses.
In 2022, around £4 billion was paid out in pure protection claims; in 2023, the figure rose to over £7 billion. In August 2024, the Financial Conduct Authority (FCA), the financial industry’s watchdog, announced a review of life insurance, term assurance, critical illness cover and income protection insurance after raising concerns that policies may not offer fair value to policyholders.
Mis-selling claims can arise when consumers are:
If you have been affected, you may be entitled to compensation. TLW Solicitors specialise in consumer financial claims and refunds, so contact us today to see if you can claim compensation. We can help on a ‘no win, no fee’ basis.
or call us on 0800 169 5925
Protection insurance policies are intended to cover loss of income or pay out a lump sum due to illness or death. They can be sold to individuals, couples or key business personnel (‘key man’ cover).
Products under review by the Financial Conduct Authority include:
Whole of life insurance, including ‘over 50s plans’, that pay a lump sum to family or the estate when a person dies.
Term assurance, a type of life insurance policy that pays a lump sum to financial dependants if the policyholder dies within a specified timeframe.
Critical illness cover, that pays out a lump sum that might be needed for medical expenses, mortgage payments or adaptations to the home.
Income protection insurance, a policy that provides regular income to help maintain financial stability following a period of injury or illness.
Insurance companies, financial advisers and brokers sell pure protection insurance products. While many act honestly and follow the rules, unfortunately, some do not.
Insurance mis-selling to policyholders can happen in several ways, including:
Protection product (such as life insurance) providers must investigate your claim and make a decision within 8 weeks of receiving your complaint.
If your claim is rejected or you do not agree with their findings, you can take it to the Financial Ombudsman Service (FOS). FOS is a government-backed, independent body responsible for settling disputes between financial businesses and their customers.
FOS claims may take several months to complete. Making a claim can be complex and time consuming – our specialist consumer lawyers understand the claims and appeals processes, the information needed and the time limits to be followed. We have up to date digital case management systems enabling us to proactively pursue your claim to ensure you get the best results as quickly as possible.
Many Whole of Life insurance policies are subject to regular review by the insurance provider. This means they could cost the policyholder more than initially thought or offer reduced benefits over time. Many people who took out these policies were unaware that their premiums could increase, sometimes significantly, rendering their policies too expensive or uneconomical to continue with. If the company who sold you the policy did not explain the charges and benefits clearly and their potential to change, you may be entitled to compensation.
The terms ‘loaded commissions’ and ‘loaded premiums’ refer to situations where consumers are asked to pay more for their insurance policy than is required to purchase their insurance cover. The additional premium increases the broker or intermediary’s commission and pays for their ongoing training. It is believed that the loaded fee could be as much 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 provide good value.
The circumstances of each case are different, but our general refund claims process is as follows:
Step 1 – You will provide us with the necessary details we need to determine whether you have a valid complaint for the insurance mis-selling by whoever sold you the policy, be that the insurers themselves, a financial adviser, mortgage broker etc. If having reviewed that information, we are happy to go ahead and investigate your case, we will securely send you our online agreement via e-sign for you to review and return.
Step 2 – Based on the information provided and using our technical knowledge and expertise of these cases, our team will draft the complaint and send to whoever sold you the policy/policies. We will decide whether it is necessary to obtain your file or other details and, if so, we will send a data subject access request on your behalf.
Step 3 – Upon receiving a response from whoever sold you the policy, we will advise you on the next course of action, including whether any offer made is reasonable and should be accepted – if we advise that you should not accept the offer, we will give our reasons why. If appropriate, we will then prepare your case for submission to the Financial Ombudsman Service (FOS).
To start your pure protection insurance mis-selling refund claim we will need:
We will prepare all your documents, do the chasing on your behalf and advise you if and why any settlement offer is reasonable, paying regard to particular circumstances of the case.
The value of your claim will depend on a wide range of factors including what insurance products you have been sold, the age of the policy, the wording of the policy, your individual circumstances (eg health, family members, age), premiums paid etc. Each case is unique, and our specialist team will ensure that we aim to recover what you are rightfully owed.
We offer a free, no-obligation assessment of your case and will make a decision on whether or not to pursue your claim. If we take on your case, we operate on a ‘no win, no fee’ basis, meaning that you do not pay us anything if your claim is unsuccessful. If we win your case, what we will charge you will depend on the amount of compensation you receive.
Our costs are governed by the Solicitors Regulation Authority. More details of which can be provided to you before you decide if you wish to proceed with a claim.
If your claim is knocked back 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.
Depending on the circumstances of your case (and due to a wide range of factors outside of our control) making a compensation claim can take several months to complete. As your case progresses, we will aim to give you as much information as possible about the likely timescales.
Our robust case management systems ensure that 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 if you need any clarification about the claim process. They will always aim to provide a full response in jargon free, plain English.
At TLW Solicitors, we have many years of experience in dealing with financial consumer claims and have helped many people recover money and redress for a wide range of mis-sold financial products.
We work on a ‘no-win, no-fee’ basis and offer a free, confidential and no-obligation initial assessment of your case. If we decide that you are eligible to make a claim, we will deal with 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 whole of life insurance, term assurance, critical illness cover or income protection insurance, please call us on 0800 169 5925 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.
Notifications
