Not upheld: inadequate information provision and poor communications regarding policy administration complaint against Phoenix Life CA Limited

Decision detail

Summary

Mr and Mrs H, as trustees of the H Trust, complained that Phoenix Life CA Limited provided poor communications and inaccurate information about their reviewable whole of life policy. The policy, taken out in the early 1990s with a £100,000 sum assured, had deteriorated significantly by 2021, with the sum assured falling to £33,410 and premiums rising to £40.17 monthly. Phoenix acknowledged system failures prevented reviews between 2022 and 2024 and paid £150 compensation, but did not uphold the complaint regarding information provision. The ombudsman found that while Phoenix failed to provide sufficient detail about charges and future sustainability, Mr H would likely not have taken different action even if fully informed, given his inaction despite receiving warnings from 2008 onwards that the policy would not last indefinitely.

The Ombudsman's reasoning

The ombudsman acknowledged that Phoenix failed to provide sufficient information about charges, future premium requirements, and potential sum assured reductions. However, the ombudsman concluded that Mr H would not have taken a different course of action even if fully informed. This conclusion was based on Mr H's demonstrated inaction despite receiving clear warnings from 2008 onwards that the policy would not last indefinitely, including a specific warning in 2017 that it would only last another year. The ombudsman found that Mr H's failure to act on these warnings, combined with the availability of alternative cover, suggested he would have kept the policy in place regardless of additional information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website