Brokers have reacted furiously to recent claims that critical illness insurance is being mis-sold.
A Channel 4 investigation recently accused lenders of mis-selling the policies and came hard on the heels of a survey by the Consumers' Association published in Which? magazine accusing the financial services industry of being “rife with poor advice and questionable sale tactics”.
Alan Lakey, partner in Highclere Financial Services, dismisses the slurs as “nonsense”.
He says: “There is an argument that everybody should have critical illness cover – all the more so when signing up for the largest debt of their lives.”
Lakey adds: “Any borrower complaining about the additional cost of critical illness cover is probably borrowing more than they can afford anyway. Such protection should be integral to a mortgage package.”
And a broker who wishes to remain anonymous calls Channel 4's stance “downright irresponsible”. The broker says after developing cancer it was impossible to obtain cover as a divorce had seen previous cover cashed in.