Insurance policies not sold unfairly

Not a single whole-of-life insurance policy has been found to have been mis-sold in the past five years despite more than 830 such complaints being lodged in the same period.

Complaints to the financial services ombudsman peaked in 2012 with 218 being lodged against insurers and brokers while a further 105 were registered last year.

Whole-of-life policies pay a specified amount at the time of the policyholder’s death but are subject to reviews — typically every 10 years to the age of 70 — which can see insurers hike the cost of the policy, making payments far more difficult to make.