monthly payment problem?

pauline10_2

Hello All.
Could anyone please advise as to the following?
Have a fifteen year life policy which has been running for twelve years, with possibly the biggest provider in UK who, have been messing me about for five months and three months ago, started sending back my monthly premiums.

Over the twelve year period, it has been the case, that any time that I make a change to the payment proceedure ( change banks ) they lose the monthly payments and take seven weeks to send me ( automated ) notification that there is a problem. On previous occasions, a phone call to one of their operatives ( who is aware of the problem and knows how to correct it ) has been enough to sort out the situation within a few working days. The said operative now seems to have vaporised.

Six weeks ago, lodged a Formal Complaint which they have acknowleged and at four weeks, received a letter stating that they are still looking into it.

My question is, Could there be some scenario where, by making it appear that I have defaulted on payment for a period of X months ( or X number of payments ) they would be entititled to shut down the policy, thereby allowing them to avoid any final payout and to swallow all the premiums that I have already paid?

Any constructive input would be much appreciated.
Thank you.

dunstonh

My question is, Could there be some scenario where, by making it appear that I have defaulted on payment for a period of X months ( or X number of payments ) they would be entititled to shut down the policy, thereby allowing them to avoid any final payout and to swallow all the premiums that I have already paid?

Most policies suffer the inability to reinstate after 12 months typically where it is your fault or external third party. Not theirs. However, the policy would become paid up (assuming its one that has value). The premiums would not be lost as each month you are buying something with that premium.

pauline10_2

Many thanks for your reply.
" Suffer the inability to reinstate " Could you please explain what this means?
Thank you

dunstonh

" Suffer the inability to reinstate " Could you please explain what this means?

It means the policy cannot be reinstated if it goes past a certain timescale unless if was their fault. (i.e. put back in place as if nothing happened). However, I wouldnt worry about it too much as you seem to indicate it is the insurer at fault and not the bank. If that is the case, then the policy being made paid up without the ability to reinstate is not a problem.

pauline10_2

Many thanks again.