Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

can we help FiL claim back anything?

20 replies

EmmaGrundyForPM · 01/06/2020 17:15

Hi, not sure whether this is the best place to post but hopefully someone can advise.

FIL and MiL have always been very independent, refusing any advice or offers of support. However over the last few years it is obvious that they have been deteriorating. The current Covid situation has pushed them to realise that they need more help with things and have asked dh to now handle all their fnuances. He has PoA and is now set up to pay their Bill's etc.

So far so good. However, the biggest singke outgoing for them turns out to be private health insurance - they are paying over £5k per year for this, which is a quarter of their income.

DH has looked at the policy and it excludes any age-related issues or conditions. FiL is 94 and MiL is 88. This means they are paying over 25% of their income for something they cannot use.

FiL cant remember but we think he took out the policy aged 60 when he retired, as previously he was covered through work. I know that FiL could have cancelled the policy at any time but he didn't realise that he wouldnt have been able to claim. When dh explained to them that any claim would be invalidated by their age they immediately told him to cancel it.

My view is that the company have a responsibility to inform customers that the policy is not suitable for their needs. He has been paying this for over 30 years, the premium is now enormous, and I think they effectively havent been covered for over 13 years at least. I feel dh should pursue trying to recover some of the premiums paid by but he thinks it's not worth trying as the company will argue that FiL could have cancelled at any time but chose to keep paying.

Is it worth trying to fight this?

OP posts:

SiaPR · 01/06/2020 17:18

I absolutely would try. Sorry I don't have a legal background, but morally this is so wrong. They may return a fraction as a goodwill gesture. I hope someone who knows more will be along soon.

Purplewithred · 01/06/2020 17:19

I think so, although from what you've said it sounds as if it would be a moral argument rather than a legal one.

GrumpyHoonMain · 01/06/2020 17:20

Yes it is. If they increased the premiums each year then someone was underwriting them based on their age so they may definitely be entitled to something. Raise a complaint with the organisation and then, if it fails, with the FSA.

whiteroseredrose · 01/06/2020 17:22

I was going to say to approach the company first and then try the Financial Ombudsman.

The company would have known their ages yet still took money for a useless product.

SarcasticMrKnowItAll · 01/06/2020 17:36

They should not have been taking premiums for a product that is not suited to them. Complain to the insurer first (make it clear it's a complaint), you'll then need to wait for their full response at which point if you're not happy with the outcome you can take it to the Financial Ombudsman

Bluet1t · 01/06/2020 17:39

Hi, I work in financial services. If the policy was recommended by a financial adviser, I would lodge a complaint with them first as they should ensure the product is suitable. They may refer the complaint to the insurance provider depending on the scope of advice, or if there wasn't an adviser, complain to both.

There is a proper regulatory process both firms will have to follow, and this can take up to 8 weeks. The financial ombudsman's service also isn't taking on new complaints at the moment due to COVID-19, so if I were you I'd just send them both a complaint letter right away, and a copy of the POA if it isn't already registered with them.

Original poster

EmmaGrundyForPM · 01/06/2020 18:55

Thanks for the responses. I think FiL set it up himself, he wasnt advised to, he had always had medical insurance as part of his work deal and so when he retired (at 60) he thought it would be a good idea. However I suspect that from the age of 80 any illness or condition would have been excluded as it could have been attributable to age.

Ironically although he is now very frail and has dementia he is never ill.

I will talk to DH about contacting the company and suggesting (very politely) that they have effectively been fleecing an older person and they should repay some of the premiums.

OP posts:

ForensicAccountant · 01/06/2020 23:20

Make sure you mention in your complaint that premiums have been unaffordable (apart from everything else).

ForensicAccountant · 01/06/2020 23:22

And that you shouldn’t need to point out that your PIL are vulnerable but do it anyway.

Original poster

EmmaGrundyForPM · 02/06/2020 04:14

thank you.
FiL has kept meticulous records of everything- he has the most well organised filing system ever. So we can see how the premiums have risen over the last 20 years or so. We haven't found any correspondence suggesting they have ever written to him to alert him to the fact that he isn't really covered any more.

I've been wracking my brains to think of a condition which might be paid for under the policy and actually can't. I think anything he tried to claim for would be dismissed on the grounds of age, even if it was something a younger person could get. Eg if he broke his leg and then needed physio as part of the recovery in sure that would get refused.

I just think it's really sad that so much of their money has gone on this policy when they could have used it to buy themselves more help at home. He could really do with a riser-recliner chair, for example, but he says they are too expensive. And MiL struggles with the laundry when they could pay someone to do it for them once a week if they had a bit more money.

OP posts:

dontdisturbmenow · 02/06/2020 07:32

I don't think it is that straight forward. Even older people can suffer from conditions that are not age related and some might very well want to be covered for these.

It's all in definition of 'age related'. Does cancer fall under it? Diabetes?

Saltycinnamon · 02/06/2020 07:38

Search ‘treating the customer fairly’ - key phrase to use in financial issues/complaints like this.

ivykaty44 · 02/06/2020 08:16

On an aside and with regard to their age and health, does one spouse considerably look after the other spouse?
You may find that one spouse qualifies for attendance allowence and this is not means tested, but they may not know or want to admit to how much help one of them needs.

attendance allowence is paid at two levels and is a weekly amount - nothing to lose by applying as they can only refuse

Original poster

EmmaGrundyForPM · 02/06/2020 11:47

Thanks @IvyKaty44. I have suggested applying for AA many times but they have refused to do it until now. I finally got the form completed 2 weeks ago so we are waiting to hear. I'd be amazed if he didnt qualify for the lower rate.

@dontdisturbmenow fair point but even if cancer is covered I think that he would probably be better off with the NHS. given his age. It doesn't cover diabetes. Again, though, if he developed diabetes at his age he would be much better off with the NHS and primary care services. 10 years ago my MIL had a heart bypass and they wouldnt cover that.

OP posts:

ivykaty44 · 02/06/2020 11:59

If maybe worthwhile searching for a carer for them to come in and help with “stuff” it’s surprising how much they will be doing and could get help and quality of life back

They will probably be resistant but, ask them to humour you and try for two weeks and if they don’t like it then stop, this is long enough to get used to someone coming in and helping and then realising how much easier it makes life

Viviennemary · 02/06/2020 12:55

I agree that it isn't as straight forward as most people seem to think. And some conditions aren't always totally age related. In any case if somebody very elderly needs an operation private hospitals sometimes won't do it anyway because of the risks involved. And they might need to go to intensive care afterwards.

dontdisturbmenow · 02/06/2020 15:21

fair point but even if cancer is covered I think that he would probably be better off with the NHS
Oh I totally agree with you I don't think private insurance is worth it at all after 60y of age but my point was that I don't think there is a case to fight that it was missold or they would need to inform older customer if the terms are clear on the policy as indeed, some older people might still willingly and knowingly want to stay with private care.

ivykaty44 · 02/06/2020 21:31

I had a friend with cancer, the operations were done in the NHS hospital. Then he was taken over the road into private hospital where the facilities were lovely

ClarasZoo · 05/06/2020 12:15

Unlikely to succeed but worth a try. The policy would cover them for many things that are not age related so it was still valid. Eg - broke a leg when a cyclist ran into me. Went on holiday to spain and pulled a muscle swimming and now need physio...

Matildatoldsuchdreadfullies · 05/06/2020 12:22

It sounds dodgy as hell to me. Would your FIL be happy for you to write to one of the newspaper financial trouble shooters? It’d be a long shot, but I suspect it’s a fairly common issue, and if they took it up, I think there’s a good chance your FIL would get some money back.

Flip