There has been a large rise in the number of reported annuity negligence claims. If you think you may have been mis-sold an annuity policy, please contact us today to discuss your options.
What is an annuity?
An annuity is an insurance contract that you purchase from an insurance company using your pension fund, after you reach the age of 55. In return for a lump sum payment (the money you have saved in your pension pot), an annuity provider will give you an annual income for the rest of your life.
In theory, this is fine if you reach old age and can take advantage of the income, however if you die early you lose your money upon death, or in some circumstances upon the death of your spouse.
Can you claim?
Can you answer yes to the 3 questions below? If so, we recommend you contact us to discuss a potential claim for compensation.
- At the time of purchasing your annuity contract, did your independent financial advisor or pension provider fail to discuss your current health?
- Did your Independent financial advisor or pension provider fail to ask you about whether you smoked, drank excessive amounts of alcohol or had any medical condition?
- Did your independent financial advisor or pension provider fail to advise you that there may be a better annuity product on the open market?
If you can answer yes to any of the 3 questions above, you may have been mis-sold your annuity policy.
Please contact us by phone on 0330 134 2582 to discuss your matter with one of our expert professional negligence solicitors or submit an online enquiry using the form to the right of this page. We are experts in annuity negligence claims, with the necessary expertise to help you pursue a claim.
How were Annuities mis-sold?
Many insurance companies failed to ask customers about their health or alert them to better deals. Many customers were therefore unaware that there were better suited annuity products on the ‘open market’, which would have entitled them to additional annual income.
We have listed below several common examples of potential claims.
Client A was diagnosed with diabetes before his retirement. His pension provider sold him an annuity based on his £100k pension pot, providing him with a £4,200 income a year. He was not asked about whether he had any pre-existing medical conditions before taking out his annuity, which would have doubled his annual income. Over a ten year period he lost over £42,000 in income.
Client B had a pension pot of £75k and was sold an annuity by his pension provider. At the time the annuity was sold, he was not informed of his right to search on the open market for a better, more suitable annuity product. Had he been given the option of this open market search, his income of £225 a month could have been worth £270 a month. Over a 15 year period he lost over £8,100.