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Critical illness cover being mis-sold

Date: Wed, 19 Apr 2006

Many advisors could be mis-selling critical illness cover in order to boost profit from homeowners.

The Telegraph reports that some financial service providers could be persuading many people to buy expensive home insurance, life insurance and critical illness cover when taking out a mortgage.

Many sales staff are aware that consumers could obtain a cheaper deal by shopping around for their critical illness cover but some advisors are keen to maximise their commission levels by convincing customers to sign up to deals jointly with mortgages.

An undercover investigation from the Financial Services Authority recently revealed that those advisers were often guilty of using scare tactics to convince people to buy cover. In some cases, advisors focused on illnesses that that the critical illness policy offered did not cover.

Consumers are being advised to read the small print on any critical illness cover and ensure they shop around for the best deal before signing up.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.