Life insurance is designed to ensure that your mortgage and other bills will still be covered if the policyholder dies prematurely.
Often sold alongside mortgages, life insurance is an important product for anyone who has a partner or children who depend on them financially.
While cases of mis-sold life insurance are not very common, they can happen. When they do occur, they often involve firms mis-selling the cover with mortgage applications.
An example of bad advice could be a provider telling you about ‘whole of life’ insurance. This is generally a more expensive form of life cover – and not ‘term’ cover. ‘Whole of life’ cover is a more complex type of life insurance that will pay out when you die, no matter what your age is. ‘Term’ cover pays out a lump sum if your death occurs within a fixed period.
If the provider failed to make it clear there were cheaper alternative options, which may have been more suitable for your needs, your cover may be considered as mis-sold.