Mortgage endowment policy not paying out on Dad's death

Soupy

Hi, I am new to this forum but was recommended to come here so I hope someone can help.

My father died 4 months ago, leaving behind an endowment policy which should more than cover his mortgage.

He died in an accident at home, and the coroner recorded a verdict of "death by misadventure". The hearing explained that this meant that his death was accidental.

The provider of the mortgage endowment policy is saying that they may not pay out the policy because it "needs to examine the details of the proposal for the insurance when first taken out in order to assess whether or not it will agree to pay the policy".

My Dad paid into this policy for more than 15 years and died in an accident and they're trying to suggest that they can just keep the money he put in?

Can they do this? It just seems that they can turn around and refuse to pay out and there is nothing I can do about it?

benjo

Im afraid I dont know the answer to this, just wanted to say sorry for your loss and how aweful it is to have this added hassle ontop. I hope someone here can help you out and that you are able to get this sorted quickly and quietly.

dunstonh

My Dad paid into this policy for more than 15 years and died in an accident and they're trying to suggest that they can just keep the money he put in?

Can they do this?

It sounds like they believe that your father did not disclose information at the point of application about his health.

If that is the case and its deemed intentional non-disclosure then the insurer can keep the premiums paid and not pay out. If it is accidental non-disclosure then they will pay out on the policy but deduct any extra costs that they would have charged had it been declared at the time. If they would have rejected the policy at the time, they will refund the premiums paid. If its found there was no non-disclosure then they will pay out on the claim as expected.

It just seems that they can turn around and refuse to pay out and there is nothing I can do about it?

They cant just refuse to pay out. If your father was honest on his application then they will pay out. If he wasnt honest then they may not.