Not upheld: Unknown / needs review complaint against Sunlife Limited
Financial Ombudsman decision DRN-4376342 of 2018-11-26T00:00:00+00:00. Unknown / needs review complaint against Sunlife Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-4376342 |
|---|---|
| Decision date | 2018-11-26T00:00:00+00:00 |
| Firm | Sunlife Limited |
| Product | Life / income protection |
| Claim type | Unknown / needs review |
| Outcome | Not upheld |
| Remedy | None - complaint not upheld |
Summary
Mrs C complained that SunLife mis-sold her whole-of-life policies because they did not provide sufficient cover for funeral costs as she had intended. She responded to marketing literature and completed application forms for policies taken out in 2009, 2012, and 2017. The ombudsman found no mis-selling occurred as Mrs C was not given financial advice, was provided with clear policy information and terms, and was given cancellation rights. The policies were never guaranteed to cover full funeral costs, and SunLife had no obligation to recommend alternative funeral cover products when no advice was provided.
The Ombudsman's reasoning
The ombudsman found that Mrs C was not provided with financial advice but rather responded to a direct marketing promotion. The application forms made clear that the applicant should ensure the plan met their needs, and Mrs C was sent full terms and conditions with cancellation rights. The fixed lump sum was never guaranteed to cover full funeral costs. Therefore, the policies were not mis-sold simply because they did not provide sufficient cover for the intended purpose.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Sunlife Limited, all decisions | 7 | 14% |
| Unknown / needs review, all decisions | 4,943 | 28% |
| Life / income protection, all decisions | 10,722 | 20% |
Source
Read the original decision on the Financial Ombudsman Service website