What happens when it is time to pay out

tony007_2

Can someone tell me what happens when it is time for the insurance policy to pay out on my endowment policy. My wife lied about her age she said she was born in 1939 when in fact she was born in 1935. What stance will the insurasnce company take on this. Thanks.

PasturesNew

If you make all the payments and stay alive to the end date, they'll just send you a cheque. Only issue I can see is if your wife dies before the end of the policy.

(Note: not qualified, just making it up)

tony007_2

What is the issue if she does die before end of policy. she is in ill health at the moment.

PasturesNew

I'd assume that the cost of the policy was calculated based on her age, partially, at the time the policy was taken out, and therefore her age at its conclusion. So her age might have made a difference to how much you were paying each month. Maybe.

But, as per my previous note, I am just making this up; assuming.

If I were right, however, then it could be possible that if the policy were payable in full upon her death that they'd compare the policy details with her death certificate ( containing her birthdate) and go "oi oi ..... she was older than declared" and decide the policy was fraudulent.

Note: I refer you to my previous note.

tony007_2

I have taken this from another site '
A provisions page should include things like a copy of your application. This means you have formed a contract and if the insurer wants to void it they have to prove you provided false information. Along with that, the incontestability clause ensures you that after two years your beneficiary won’t have to prove the statements you made on your application were true unless you lied about your age. Adjustments to the policy’s face amount will reflect the amount of insurance that the premium paid would have purchased at the correct age. Typically you have 31 days from your due date to pay the premium and keep your insurance. Most policies, with a few exceptions, exclude suicide during the first two years. I had no knowledge of my wife's real age until just recently so where does this leave me? Thanks for your comments Pastures New, I would also like someone else's opinion.

Money_maker

tony007 wrote: »

I had no knowledge of my wife's real age until just recently

:eek::eek::eek:

dunstonh

I would also like someone else's opinion.

That other page is almost right but there is a bit more to it than that. The FOS have published information on non-disclosure or disclosure of incorrect information. It outlines how it would deal with complaints in cases of non-disclosure/wrong disclosure issues and insurance companies work to that basis.

If the "error" was inadvertant, then the insurer will look to see if they would have offered cover from the start based on the revised information. If they would and the premiums were higher, then they would pay the claim but deduct the higher premium from the claim. If they would never have offered cover they would refund the premiums paid.

if the error was "intentional" then they are within their rights to refuse the claim and they do not have to return the premiums.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-ins-nondisclosure.htm