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There has been an increase in the number of complaints about the apparent mis-selling of whole-of-life insurance policies.

Seems to be a lot of mis-selling going on lately between PPI claims and now this with insurance policies.

Basically the complains stem from the fact that people purchased these life insurance policies with the promise that the policy would pay out a fixed sum once the policy holder or insured dies, and that the payment/premiums for the policy would not change or increase.  The payments would be paid from the investment portion of the payments.

But what has occurred is that some people have been contacted by the insurance company and informed there is to be a change in the policy.  Either the customer will need to pay more each month for the premiums, or the death benefit will need to be reduced.

The complaints being filed to the FOS or Financial Ombudsman Service, are due to the fact people feel this was not disclosed to them, and made clear at the time the policy was taken out.

The insurance companies state that the investments or returns expected by the policies are less than what was expected and adjustments need to be made.  The insurers also state this is disclosed in their brochures.

So this is something to keep in mind and possibly inquire about when considering taking out an insurance policy.  It also will be something to keep in mind as to what type of life insurance policy one is considering or may need.


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