Misleading advertising for Over 50s Life Cover

NEWS
Published
Jan 17th '19
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The Financial Conduct Authority’s (FCA) financial promotions team have seen promotions for Life Policies for the over-50s where they believe consumers could be misled into thinking they are buying a policy that will cover their funeral costs. Proceeds of these policies can be used for payment of, or towards, the cost of a funeral. However, it is important that, if a firm’s promotion refers to funerals and associated costs, consumers are not misled into believing they are buying a funeral plan that will cover their funeral costs in full.

Over-50s Life policies are widely promoted through various media channels, including television advertisements. They guarantee to provide Life Cover for the over-50s without the need for customers to have a medical examination. If a firm’s promotion includes product features or benefits, these must be presented in a fair, clear, and non-misleading way taking into account the target audience.

In November 2012, the Association of British Insurers published ‘Initial Guidance on Over 50s plans’ which providers of these plans may wish to refer to when designing their promotions.

The FCA expect all advertising to be fair, clear and not misleading in line with their rules.

Source: FCA

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