Kieran O'Donnell (Fine Gael) | Oireachtas source

I thank the Cathaoirleach for allowing this matter to be raised in the House. This long-standing matter came to my attention when a constituent came to me about a whole-of-life assurance policy he had taken out ten years previously when he was 80 years of age. It was a policy of around €100,000. When he reached 90 years of age, the policy was reviewed. By this stage, he had paid 1.3 times the value of the life cover into the fund. He was informed by the insurance company that if he did not continue to make annual contributions to this whole-of-life policy, it would have no value and the policy would die.

When he was buying the policy, his impression was that he would pay into it over several years and there would be an investment element to it. Effectively, it would come to a point where it would have an investment value which would link in with the life cover. In the main, these policies are held by people of a more mature age. People are under the misapprehension that they are buying an investment product with life cover. Instead, it would appear to have all the aspects of a rip-off. Suddenly, before they know it, it becomes purely a life cover policy whereby, if they do not continue to pay exorbitant premiums every year, their policy dies. Someone could have a life cover of €100,000 year but, if they lived to a ripe old age, could have paid €200,000 into the policy.

Will the Minister of State commit the Department to undertake a review around this area?In this particular case, he would have gone to the Financial Services Ombudsman but got no satisfaction of any degree.

There are three aspects. Where does the review stand, how does the Minister of State believe it can be addressed and what does he think of the Financial Services and Pensions Ombudsman's remit with regard to people having recourse to the Financial Services and Pensions Ombudsman, where substance would be placed over legal form? In reality, policies are being sold with all the benefits for the insurance company and all the losses and risks for the person being insured. Surely that is not fair.