Not upheld: mis-selling / unsuitable advice on protection insurance complaint against Vitality Corporate Services Limited

Decision detail

Summary

Mr and Mrs L complained about protection insurance advice provided by Vitality in February 2022, which recommended joint life cover and serious illness cover over 30 years. They became unhappy after their son became ill and they could not claim, leading them to question the suitability of the advice. The adviser had recommended covering all three of their mortgages (totalling £415,000) on an indexed basis. Mr and Mrs L's representative argued they did not receive the recommended product as the entire policy was indexed when only the SIC should have been, making it unaffordable. The ombudsman found the advice was suitable based on the information gathered, the practical benefits of one policy over three, and the clear documentation provided prior to commencement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman reviewed the recorded calls and documentation to assess suitability. The adviser obtained comprehensive personal information about Mr and Mrs L's circumstances, objectives, and budget. The recommendation to cover all three mortgages with one policy was found to be practical and cost-effective, and Mr L was made aware he would receive more cover than strictly needed and could modify it. The adviser explained the reasons for the SIC amount based on annual outgoings. Although indexation was not explicitly discussed in detail during the calls, the statement of demands and needs clearly documented that both life cover and SIC would be indexed, and Mr and Mrs L were informed they could reject increases annually. The three-month gap between initial contact and policy commencement provided opportunity to raise concerns. The cancellation in 2025 was motivated by dissatisfaction with a separate complaint outcome, not affordability issues.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website