Not upheld: policy value and terms - complaint about sum assured being less than total premiums paid complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mr C complained that Aviva continued to take premiums on his whole of life policy despite him having paid approximately £2,800 in total premiums, which exceeded the fixed sum assured of £2,080. He felt this was unfair and requested a settlement figure. The ombudsman found the complaint not upheld because the policy was sold on a non-advised basis and the policy literature, including key features and risk factors, clearly warned that if the policyholder lived long enough, total premiums paid would eventually exceed the amount payable on death. The policy has worked as intended and Aviva provided clear, fair and not misleading information at the time of sale.

The Ombudsman's reasoning

As this was a non-advised direct sale, Aviva's responsibility was limited to ensuring the information provided was clear, fair and not misleading. The policy literature, including key features, specifically warned Mr C of the risk that total premiums paid could eventually exceed the sum assured payable on death. The illustrations and examples also made clear that early cash-in values could be less than premiums paid. The policy has worked as intended and the risk was clearly explained at the time of sale. While Aviva could have provided better customer service by providing the cash-in figure earlier, this would not have changed Mr C's position given his continued unhappiness with the quotes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website