We were asked to review an Income Protection policy to identify if it represented good value. At first glance the premium was competitive, but small print revealed claims would only be payable for up to one year. When we explained this to the customer, they said they’d been sold the policy on the basis the length of claims was not limited.
Issue
The customer believed they had bought a product known as Permanent Health Insurance (PHI for short). When, in fact, they had been sold short term Income Protection.
Outcome
While a little more expensive, we arranged a PHI policy which could replace their income for over 30 years – until their intended retirement age.
