Re: Life Insurance
Its not just brokers who sell/have sold this product. Tied Agents and direct sales forces for insurance companies have sold it as well and I know at least one bank who have stopped their direct sales force from selling it to people for mortgage protection purposes because they got better credits towards their sales targets (and it wasnt all that long ago).
Like any industry there is good and bad brokers just like their are good and bad direct sales force people. Lets not tarnish brokers all with the same brush please. The fact that insurance companies are now moving away from this type of product shows that they recognise that this product is not consumer friendly long term as too many accusations of mis-selling and insurance companies screwing customers at review are coming out.
Like Liam said, the product is fundamentally flawed. If you want life insurance buy a term/convertible term product/guaranteed whole of life plan, if you want a saving product, get a savings product. The two do not work together. Highlight says that €8,000 was paid in, a lot of this went to pay for life assurance, this is money that Highlight will never see back but seems to have an expectation to. In my opinion that isnt right regardless of who sold the policy, the policy itself is misleading as you do not know what it will cost long term.
I would have not have a problem getting acceptance on a new policy, stopping the existing policy at this stage, enquiring if the units can be left paid up to avail of any bounce in the markets and starting a new policy if I was in Highlights position.