Southend West MP Sir David Amess raised the issue of the mis-selling of life insurance policies to over-50s during Business Questions on Thursday 11th October.
Speaking in the House of Commons chamber, Sir David asked the Leader of the House for a debate on the matter: “Will my right hon. Friend find time for a debate on the mis-selling of life insurance policies to the over-50s? Too often our constituents find that they have been paying more into the schemes than they will actually receive on their death, and if they try to cancel the policy they lose everything.”
Responding to the local MP’s question, Andrea Leadsom, Leader of the House of Commons, said: “My hon. Friend raises an important matter that will be of interest to his constituents and many others. What I can tell him is that with a whole-of-life insurance plan a buyer chooses to pay a fixed premium at the outset of the policy. That is then payable until death, with a guaranteed cash amount paid out on death, which means that such policies pay out regardless of whether or not the buyer has paid less or more in total than the lump sum advertised. However, if his constituent feels that the arrangements entered into were unclear or misleading at the time, my hon. Friend should certainly contact the Financial Conduct Authority on their behalf.”