HELP! Life insurance policy surrendered but I didn't get the money?

sarah7610

Can someone please give me some advice?

I had a life insurance policy which started in the 1990's. My Dad paid the monthly premiums as I couldn't afford it at the time, however the policy was in my name and had my present address on it.

I recently phoned co-operative insurance to ask what had happened to this policy but they wouldn't tell me anything over the phone and said I had to write to them, which I did on 22nd Feb this year.

I have had a reply from them today telling me that the policy was surrendered in June 2005 and therefore of no further value.
It says if i require any further assistance to phone their customer service department, which I did and they won't help me.

My problem is this, I have never recieved any money from them as it wasn't surrendered by me. It couldn't have been surrendered by my Dad as he died in July 2004 and they told me on the phone that it would usually go to the policy holder ie. me. This just leaves my step-mother.

After my Dad died she made sure I got nothing, not even so much as a photograph. She even phoned me just after the funeral to tell me that my Dad didn't have life insurance so not to expect anything. Which I thought was a bit strange as he was an insurance agent for CIS for many years.

My question is, would she have been able to cash in my life insurance and if she did, where do I stand legally if I want it back?

Thanks for your time, Sarah

dunstonh

It couldn't have been surrendered by my Dad as he died in July 2004

That probably means the policy ceased to be paid. They would have written to the address they held for the policy owner to ascertain why premiums were not paid.

My question is, would she have been able to cash in my life insurance and if she did, where do I stand legally if I want it back?

You need to find out how the policy was written. For example, was your father the owner but you the life assured. Once you know how the policy is written, you will know what you are entitled to or not and what happens next.

sarah7610

dunstonh wrote: »

That probably means the policy ceased to be paid. They would have written to the address they held for the policy owner to ascertain why premiums were not paid.



You need to find out how the policy was written. For example, was your father the owner but you the life assured. Once you know how the policy is written, you will know what you are entitled to or not and what happens next.

When you say the policy owner, is that the same as policyholder?

The top of the letter says:

Policy number: ********
Policyholder(s): Sally Blogs
Life/Lives assured: Same as Policyholder(s)

Thanks

Sarah

dunstonh

As the policyholder (owner) and life assured are the same then if another party has taken the money then it is fraud and should be reported to the insurance company first and then based on your discussions with them, it should then be reported to the police. The insurance company should be able to let you know whats been done.

JayZed

Was it a term assurance policy or a whole of life insurance plan? My understanding is that term policies don't normally have a surrender value - if you stop paying the premiums, then cover stops. Only a whole of life policy would have had a surrender value.

If so, isn't it possible that the policy just stopped when your dad died and stopped paying premiums?

I may be wrong about that, I'm not an IFA - dunston can probably confirm whether I'm on the right lines or just talking cobblers.

By the way, it's up to you, but if I were you I wouldn't put my full name in a posting on this forum.

dunstonh

You are correct with a term assurance policy. However the wording of "surrendered" and the fact its a home service company (CIS) and it being started in the 90s (endowments era) all suggests a savings endowment.

A lot of people referred to their savings endowments as life assurance. Even though the life assurance element was often very small.

sarah7610

Thankyou, you've been very helpful x

sarah7610

Hi, I have phoned CIS and they have confirmed that it was cashed in. If the policy just stopped then the letter would have said cancelled rather than surrendered.
Thanks for your reply as it made me some do more checks with CIS.
As I have no clue about insurance this website is priceless!

rudekid48

Sarah,I really would suggest that you go and edit your previous post and remove your full name. From what you have posted on here there is the potential that a crime may have been committed. Insurance companies take these things very seriously (as they should) and together with the Police could make life very difficult for the person that may have committed this act. As the policyholder you will have an involvement in the process and so you do not want your name plastered over the internet. Bear in mind that search engine spiders touch all of these forums and in a couple of months time your name could be picked up by google searches etc.

sarah7610

Thanks, I have taken the advice and changed it.