Hi All,

I'm a newbie on here so hope I'm posting in the right place....?

Have recently arranged power of attorney for a great uncle and trying to get things in order for him. Doesn't have any idea what day it is let alone manage his finances.

I've come across a Sun Life policy he has which he took out to pay his funeral costs.

It was an Over 50 plan taken out in 1988. Quarterly payments are £12.00 (£48/year) with a guaranteed payout of £570 on his death.

I think I've read somewhere in the policy that payments will automatically finish on his 90th birthday (March 2012). On this basis he has one more quarterly payment to make bringing the total amount he has paid into this policy in a 24 year period £1152.

I have just received a statement from Sun Life (now part of Friends Life) reiterating that he will receive a guaranteed £570 on his death.

As the title says, CAN THIS BE RIGHT?? Sounds as if it has been mis sold although he could have died 5 yrs after taking it out but I just can't believe this is acceptable.

Any advice greatly appreciated.

Hello, yes this is the right forum.

I think a lot may depend on the policy wording, which you seem to have. The important part is often called the Policy Schedule. Does it say what type of policy it is at all? Is anything payable over and above the £570, like a bonus?

The mis-selling part is difficult to comment on with this amount of information, but I think 1988 was when the Financial Services Act came in, I forget which month exactly. If the policy was taken out prior to that, your rights may be restricted.

But as you say, the policy could have paid out very shortly after your uncle took it out had he died. With some types of policy, people who live longer offset the costs to the fund of the people who die early on.

The FSA have a helpline that you could ring to discuss it. The number is on their website.

My best, HB