rjimmer Posted August 8, 2009 Report Share Posted August 8, 2009 A distant relation died last month. She had been paying into an insurance policy that was supposed to pay for her funeral. After giving AXA Sun Life £4.50 a month for over 22 years, they are going to pay out just £556.00. The funeral cost £2,900+! I don't suppose they expected a 73-year-old to live another 22 years in 1986. BEWARE! Quote Link to comment Share on other sites More sharing options...
kev 1 Posted August 8, 2009 Report Share Posted August 8, 2009 That is a discrace,rip off Britain yet again.... Quote Link to comment Share on other sites More sharing options...
rimfire4969 Posted August 8, 2009 Report Share Posted August 8, 2009 Firstly Sorry for your loss. Secondly £4.50 per month is £54.00 per year, 22 years £1188.00 paid in. i don't understand how you are only getting roughly half of what with paid in. Quote Link to comment Share on other sites More sharing options...
rjimmer Posted August 8, 2009 Author Report Share Posted August 8, 2009 The insured amount was £556.00. A total of £1224 was paid in. I never have trusted any financial institutions. Quote Link to comment Share on other sites More sharing options...
pyr8 Posted August 8, 2009 Report Share Posted August 8, 2009 get some legal advice,were are the bonus premiums. Quote Link to comment Share on other sites More sharing options...
JonD Posted August 8, 2009 Report Share Posted August 8, 2009 Firstly Sorry for your loss. Secondly £4.50 per month is £54.00 per year, 22 years £1188.00 paid in. i don't understand how you are only getting roughly half of what with paid in. Sorry for your loss. I would be checking out the ombudsman whoever is applicable. With the payment over the years plus growth is should equal at least the cost of the funeral and the insurer should be more than aware of this. Jon. Quote Link to comment Share on other sites More sharing options...
shotgun666 Posted August 9, 2009 Report Share Posted August 9, 2009 they are a rip off Quote Link to comment Share on other sites More sharing options...
pyr8 Posted August 9, 2009 Report Share Posted August 9, 2009 i get plagued with mailshots from them and that scab parkinson. Quote Link to comment Share on other sites More sharing options...
V8landy Posted August 9, 2009 Report Share Posted August 9, 2009 and that scab parkinson. My tip is never buy any insurance policy or the like that is advertised by "celebrities" e.g Carol Smillie or offers you a "free" Parker pen or £20 of M&S vouchers. Quote Link to comment Share on other sites More sharing options...
Fatcatsplat Posted August 9, 2009 Report Share Posted August 9, 2009 Don't bother with the ombudsman - Tell them that you will be contacting the FSA on the principle that the customer was not treated fairly - Should send a rat up their drainpipe. www.fsa.gov.uk Quote Link to comment Share on other sites More sharing options...
rjimmer Posted August 9, 2009 Author Report Share Posted August 9, 2009 I've contacted BBC MoneyBox and Watchdog to start with. Who said there was no such thing as bad publicity? Quote Link to comment Share on other sites More sharing options...
rjimmer Posted August 10, 2009 Author Report Share Posted August 10, 2009 The dead person's next of kin has been arranged an interview with somebody, by the CAB. Allthough I have never had much help from the CAB, I am going with them to the interview. Meanwhile, the undertaker will have to wait for his money. I believe they are used to that! Quote Link to comment Share on other sites More sharing options...
Marcus Posted August 12, 2009 Report Share Posted August 12, 2009 I am sorry to hear of your loss. From reading the post, it would appear the person took out an 'assurance' policy (sometimes called a Whole of Life) and not an investment. There is a fundamental difference. It does mean that it is possible, with time, that the insured will pay in more than the 'sum assured' as in this case. It also is true, that if the insured had not lived that long after taking out the policy, they may have paid in less than the sum assured that is paid out. The circumstances surrounding the sale is a completely different issue. A complaint to the company may reveal little, as regualtion and required paperwork were not as robust as they are today, though it wont hurt to ask the question. If I can help with any questions you may have then please send me a PM Sorry for your families loss Quote Link to comment Share on other sites More sharing options...
rjimmer Posted November 16, 2009 Author Report Share Posted November 16, 2009 I see the recent adverts have changed the small print that flashes across the bottom of the screen from "Inflation may affect the value of the amount paid out" to "The amount paid out may be less than you pay in", or words to that affect. Seems like potential bad publicity has had some results. Quote Link to comment Share on other sites More sharing options...
barrowboy Posted November 16, 2009 Report Share Posted November 16, 2009 Firstly Sorry for your loss. Secondly £4.50 per month is £54.00 per year, 22 years £1188.00 paid in. i don't understand how you are only getting roughly half of what with paid in. Almost as good as my life insurance ,been paying in £50 a month for the past 23 years .Was suposed to cover me for around 60/80k index linked when I first took it out , it's total value on this years statement is just £9,473.14p . So anyone thinking of taking out life insurance would be better off sticking it in a savings account . At least you know your money is safe :blink: Quote Link to comment Share on other sites More sharing options...
jonno 357 Posted November 17, 2009 Report Share Posted November 17, 2009 Did she read through the contract or read through the small print before signing? Its very rare they get it wrong! Jonno Quote Link to comment Share on other sites More sharing options...
Ballymac Posted November 17, 2009 Report Share Posted November 17, 2009 (edited) Hi rjimmer Marcus is the only one that is giving you any sound advice. I assume he is or was working in financial services. If you have a complaint you need to contact the company first, if you are not satisfied then you can go to the ombudsman. This is the correct procedure, others are leading you down the wrong path. Marcus has identified the assurance policy that you had. People should shoud realise that if the shoe was on the other foot, i.e had £554 been paid out for a total of £45 paid in there would be no complaint. Having said that they next of kin can contact the company involved or use some other means by trying to shame them, but I think if contact is made with the insurance company they will make some offer. Remember the cost of the funeral has nothing to do with the amount paid out. Take up Marcus offer of help or mine and between us I think we can guide you down the right course. I would suspect that the policy sold was fine as long as you were aware of its' limitations and that's the point that is being made by Marcus. Just to point out the limitations This type of policy is aimed at a niche market and has a limited appeal. They sell on the basis of guarnateed acceptance no matter what your medical history, but you are not fully covered for the first two years and at low premium levels. After that the sum assured becomes payable but the policy should have been reviewed by the client/family as you can actually pay more into these than you will ever get out. Edited November 17, 2009 by Ballymac Quote Link to comment Share on other sites More sharing options...
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