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Surrender value of parents policy is POA needed

Ladywriter1968
Ladywriter1968 Posts: 913 Forumite
edited 5 August 2010 at 10:11PM in Insurance & life assurance
The child has been paying an insurance policy for 8 years for their parent. But the insurance is only worth just over a £1000. Because the parent never took one out so the child had to take this on themselves. Now their parent is 80 years old so could not take out another policy. Its to late.

The child has been advised now to "surrender the policy" and get "a surrender value Fee" which someone stated they would be better off, and the surrender value may be between £400-£600; which they could put a side towards funeral costs. Rather then end up paying over the odds for a cheap policy.

A few years ago the parent signed a typed letter authorising the child to be able to discuss this policy before the parent became sick. The parent is now sick in a care home with dementia.

The child does not have power of attorney. The LA do.

Will the insurance pay out the surrender value to the child without POA? or will the child have to go to a solicitor?

Plus now the insurance company claim they cant find the letter of authority as well.

Comments

  • yelf
    yelf Posts: 865 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    the letter may allow the child to discuss the policy but nothing more. The LA would have to make the decision on surrendering it.
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