Not upheld: complaint about plan design and value - premiums exceeding sum assured complaint against Phoenix Life Limited

Decision detail

Summary

Mr M complained to Phoenix Life Limited in October 2025 after realizing he had paid more in premiums than the sum assured under his Senior Security Plan taken out in 2002. Phoenix declined the complaint, explaining that the plan was designed to pay a lump sum upon death as long as premiums were paid, and that the key features document and terms and conditions warned that premiums could exceed the sum assured depending on how long the policy remained in force. The ombudsman upheld Phoenix's position, finding that the plan was operating as designed and disclosed, and that no errors had been made. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the plan was operating exactly as designed and as disclosed in the key features document and terms and conditions. The documentation explicitly warned that premiums paid could exceed the sum assured depending on how long the policy remained in force. As a whole of life plan with fixed premiums and a guaranteed sum assured, this outcome was a possibility inherent to the product design. Phoenix had also sent review letters in 2015 and 2021 giving Mr M the opportunity to assess whether the plan still met his needs. No errors were made and the plan was working as it should.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website