Life Broker provided incorrect details of Income Protection Policy. Policyholder Recourse

WN4

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If a broker provides (emailed) details of an Income Protection policy and it is subsequently taken out on that basis , is there any recourse for the policyholder if the information proves to be incorrect?

Specifically, it was about automatic indexation & the broker stated, if required, it could be cancelled prior to the inception anniversary each year. (This may be necessary to avoid over-insurance due to the 75% income rule and/or the increase in premium)

This information has proved incorrect as indexation will no longer apply if cancelled on two successive occasions according the the insurance company.

In order to retain the option, the only option is to cancel it biennially but this could mean being over insured and would mean a premium increase on each occasion indexation is applied.

The broker has admitted a mistake was made but cannot make amends. There are no other insurers to choose from due to occupation class & level of cover.

Could anyone advise on this matter?
 
Most Income Protection policies can be manually altered. So you could, for example, allow the annual indexation to proceed in order to maintain the option. If this results in your being over-insured, write to the insurance company and ask them to reduce your cover to X.
 
Thanks Liam. If, as outlined above, I write to the insurer requesting a reduction of cover , would the premium revert to the pre-increase amount also?
 
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