Bank refusing ro release interest in Endowment Policy

rosyw

I'm have trouble with Lloyds, my partner died in January, at the time his account was overdrawn, several years ago Lloyds took our endowment policy as security against the overdraft, howedver I have since found out that there was an insurance in place, arranged through and paid to Lloyds, which would clear the overdraft in the event of his death. Lloyds are refusing to release their interest in the endowment policy until the other insurance has paid out, can they do this? the insurers say that they should either have claimed or released the policy.

stephenni1971

Rosyw,

Sorry to hear about your loss...

Lloyds are refusing to release their interest in the endowment policy until the other insurance has paid out, can they do this?

You have already answered your own question when you said -

several years ago Lloyds took our endowment policy as security against the overdraft

.

The bank have every right to keep the endowment until such times as the insurance clears the debt on the overdraft.

rosyw

Thanks, I was a bit concerned over this as they have refused to send me a copy of the paperwork which was I/we supposedly signed, the other insurance cover was taken out at a later date, it just seemed to me that they had this covered twice if you see what I mean.

pedro123456

Rosyw..............someone will help and advise you soon I hope....there are some good uns about.

Pete

stephenni1971

Thanks, I was a bit concerned over this as they have refused to send me a copy of the paperwork which was I/we supposedly signed

I wouldn't be too happy about this statement - if you signed a guarantee with the bank they should be able to provide you with a copy - unless the endowment was in your partners name only and you were not a signatory to the guarantee.

the other insurance cover was taken out at a later date

If the other policy was indirectly giving cover on the overdraft, then this will be the banks issue... as it stands they have a cast iron guarantee ( the endowment ) against the overdraft. The proceeds of the other policy would go into your partners estate and does not give the bank the same security.

Your partners executors will have the duty to collect the benefit on any insurances and clear off any debts liable so you should contact them to see what progress has been made...

Good luck.

rosyw

I wasn't happy with this statement! the other insurance was a payment protection policy covering the overdraft, which the insurere tell me will be paid directly into the bank account, thus clearing the debt, I am his executor so have been dealing with tis myself.

dunstonh

someone will help and advise you soon I hope....there are some good uns about.

And stephenni is giving out the right information leaving not much else to add.