Insurance

[waltekar]

Please correct me if I'm wrong, but my mother has 2 extremely old Insurance policies that my dad's mother took out for my dad in 1928 and 1930. On the Policies it says 'Life Insured' with my dad's name. Doesn't this mean that as my father has passed away, these policies should now be paid out (to my mum as named in his Will) ? The Insurance Company are saying that they have already been paid out, but surely, that cannot have happened whilst the 'Life Insured' was still alive?

[Loosehead]

If they where endowments then they would have paid out once the term is up. Is there a Maturity date mentioned? Sounds as if they where not "whole of life" and where in fact some sort of investment vehicle.

[waltekar]

Hi Loosehead, what it actually says on one policy is "The premium payments due in respect of the above Policy having ceased, IT IS HEREBY CERTIFIED that, subject to any endorsement thereon affecting the amount assured, such Policy has become a Free Paid-up Policy for the sum of �5.15 (and �12.11.0d the other Policy) payable on the death of the Life insured WHICH SUM INCLUDES REVERSIONARY BONUS" ( I actually sent the A3 originals to the Insurance Company, who, confirmed receipt in writing, but have told me they can't find them now. They do not know I have a copy of each.) On the policy there was a sticker which says "This Paid-up Policy Certificate is hereby cancelled, the Policy No......... issued in connection with the assurance dated 1/12/28 having been endorsed with the paid-up Policy amount . Date.... 26.8.55. I can't make out what these stickers mean.

[Ethel]

The sticker means it is cancelled, and therefore worthless now.

[waltekar]

OK, thanks then everyone, guess we'll have to keep doing the Lottery then!

[Loosehead]

The term "Paid up" means one of 2 things:

1) the premiums where not paid , ie ceased,so the policy just sits there until the maturity date. Ie they do there best to get the premiums but it's not a credit issue so they'd just not bother chasing after a while.
2) The premiums where paid up to the maturity date.

Can you see anything that gives some sort maturity date?

The phrase "reversionary bonus" tells me it is most likely a with profits endowment and that bonuses where added throughout it's life. Looks like it matured in 1955 and was duly disbursed and cancelled. A half decent IFA should be able to decipher with the actual docs.

There are many forms of Life assurance not all require death to pay out.

[waltekar]

Hello again, Loosehead,
On one it says ENDORSEMENT - Immediate Quarter Benefit granted on this Policy. After 13 weeks Half Benefit is payable. After 26 weeks Full Benefit is payable, subject to completion of twelve calendar months premium payments as provided by contract within. And on this Policy's Endorsement it reads "PAID-UP PLICY ENDORSEMENT. (1). Premium payments hereunder having ceased this policy has, pursuant to Rule 19 (s) of the Society's Rules, become a Free Paid-up Policy for the Reduced some of �1.19.0d payable at death, subject to the production of this policy and such other evidence of title as may be required." Then there is a ref and dated 25.10.38. The Policy is huge though, A3 and the print is minute, I cannot see a maturity date on either of them. The date of Entrance was 1.3.30, so she paid the premiums for about 8 years I suppose.