Over 50 Life Insurance who benefits?

tarina_2

My partner of 8 years very suddenly died recently. We had taken out an over 50's policy with the Post Office which I had been paying out of my bank account. He had a Will leaving everything to me. When he died I informed the insurance company (Norwich Union), they sent me a letter (we did not live together) asking me to send the death certificate and they would send me a claim form. I then had to go to France. Whilst I was away the insurance company sent a letter to his flat (addressed to us both) which was picked up by his sister who has claimed the insurance as his "next of kin". She has also taken his Will (saying there was no Will), I of course can't prove that. She had had nothing to do with him for 3 years. When I telephoned the insurance company they said they could not speak to me even though I had been the payer of the premiums. The claim was settled and that was that. Can this really be correct? Any advice would be greatly appreciated.

dunstonh

Unless the policy was written in trust then the proceeds on death will be paid into this estate. From there, the executor of the estate would distribute the funds in accordance with the Will.

If there was no Will, then the sister would be next of kin (presumbly no children or parents) so siblings would be next.

Norwich Union should only deal with the policy owner(s) or the executor of the estate. No other third party, including potential beneficiaries should be able to communicate with NU.

Was the Will registered or a copy held by a solicitor or third party?

tarina_2

No the Will was not registered or a copy held by a solicitor. We had a copy at his flat which has obviously disappeared along with all his other paperwork. How can I have no rights whatsoever if I was paying for the policy? Does that mean if he had died without a Will or next of kin that the Crown would get the proceeds? Surely when we took out the policy as i was paying for it if I was not going to benefit the Norwich Union should have put me on notice or asked for a copy of the Will. I am sure when we took out the policy I was the named beneficiary but I don't have a copy of the application form. Why should his next of kin automatically be the executor of his estate? Why should someone who has obviously taken the Will benefit? Surely the fairest way to have dealt with this was not to pay out on the policy at all.

dunstonh

How can I have no rights whatsoever if I was paying for the policy?

The rights are with the policy owner or the beneficiary. Not the person that pays. The problem was that you didnt nominate a beneficiary under trust. That would have been virtually automatic under an advice case (when unmarried and not joint cover, its an automatic consideration). However, non-advice cases require you to do this yourself.

Surely when we took out the policy as i was paying for it if I was not going to benefit the Norwich Union should have put me on notice or asked for a copy of the Will.

That is the job of your financial adviser. If you dont use a financial adviser then you take on the responsbility for knowing and doing it yourself. Haven chosen the post office plan, you probably didnt use an adviser as I doubt any IFA would recommend that plan as its not very good. However, if you did use one, then you do have some grounds for complaint against them as they should ensure the trust is set up so the right beneficiaries are in place.

I am sure when we took out the policy I was the named beneficiary but I don't have a copy of the application form.

It wouldnt be part of the application. It would have required trust forms and additional trustees forms..

Why should his next of kin automatically be the executor of his estate?

They are not automatically. Who was the executor?

Why should someone who has obviously taken the Will benefit?

You are basically accusing the sister of a criminal offence. Theft. Why does any thief steal?

Surely the fairest way to have dealt with this was not to pay out on the policy at all.

The insurer cant sit on the money. There is a legal process that has to be followed.