Financial Matters
The Financial Conduct Authority ( FCA) have recently announced that they are to carry out a review of the annuity market for the last seven years or so – from 2008 onwards.
They “believe” that a lot of people may have been mis- sold annuities, but this definition is not the one that I would have used, because this review is ALL on providers.
The FCA believe that providers never gave people the full benefit of their conditions – even if they were mild conditions – thinks like high blood pressure, diabetes, high cholesterol , etc. They have quoted a figure of one in 10 people to be affected, which is pretty high.
When you think about the situation where you apply for insurance, then providers will make a big deal out of these “small” things like diabetes and hike the premiums up accordingly. I myself have type two diabetes, and I know that when I went for life insurance a few years ago, my premiums were multiplied by something like two.
The FCA were concerned that providers took almost opposing views when it came to annuities, and instead of giving people the benefit of the doubt, funnily enough, they gave themselves the benefit of the doubt – and so gave themselves an additional profit in the process. The FCA said that this wasn’t on at all.
Providers will very shortly be told to review all cases from 2008 onwards, and if people did have minor medical conditions, that weren’t included in the final package, then they will be told to recalculate those annuities and pay compensation to customers affected.
So the main point for everyone who has taken out an annuity from 2008 onwards, is look out your paperwork if you have a minor illness, because pound to a penny, you won’t have received anything additional for said medical condition – and you should. You will get compensation as a result. What’s good for the goose is good for the gander. n The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make ( or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice and Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or ayrshirepost@ mapfinances. co. uk.