Not upheld: Travel / life insurance claim disputes complaint against Wesleyan Financial Services Ltd

Decision detail

Summary

Mr O, a self-employed professional, complained that Wesleyan Financial Services mis-sold him a Friends Life Income Protection Cover policy in May 2014. Mr O claimed the policy was unsuitable because his self-employed income fluctuated and had fallen significantly during the Covid-19 pandemic. Wesleyan maintained the policy was suitable based on the financial review and Mr O's stated needs at the time of sale. The ombudsman found that the adviser had properly identified Mr O's need for income protection, based the recommendation on the £20,000 annual income Mr O had disclosed, and recommended a policy matching his preferences for guaranteed rates and maximum benefits. Although Mr O's circumstances changed over time, the adviser could only base advice on information available in 2014, and the policy offered flexibility to adjust benefits. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the adviser based his recommendation on income information provided by Mr O (£20,000 annual income) and that Mr O would likely have raised any discrepancy when he received the financial plan. The adviser identified a genuine gap in Mr O's financial protection and recommended a suitable policy that matched his stated needs, budget, and preferences for guaranteed rates and maximum benefits. The 26-week deferred period was appropriate given Mr O's confidence he could meet shortfalls from personal resources. While Mr O's income later fluctuated due to Covid-19, the adviser could only base advice on information available at the time of sale. The policy did offer flexibility to adjust benefits if circumstances changed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website