life insurance +endowment? dhss help

jamesann

hi my mums pal had a 10 year life insurance with an endownment

so after the 10 years she gets
£10.000 before she can cash it she get a knock at the door
the dhss want her 2 pay rent and poll tax for the last 2 years because she now has the £10 .000
do insurance companies inform someone when paying out insurance
at the end of the term
thanks jim

dunstonh

With life policies there is no information passed on to the authorities. With some other savings and investments where the NI number is recorded, the IR/DSS can pick up the information from there.

So, if the proceeds were paid into a bank account with gross interest, it could be seen then (usually after a year or 2 delay). Or, when the statements were checked on a review, they spotted the maturity being paid out.

jamesann

hi it was a bit strange them turning up the same day as she got her cheque
maybe just 1 of those things as you said she may have had a look at her account and found she was over the cash someone on the dhss should have
i dont know if thats the case but as there askingfor back dated polltax/rent
it must be that
my endownment out next year woudnt like a knock on the door
asking for a slice of my cash lol
thanks jim

dunstonh

Why backdated? The life policy is just that until it matures. There is no cash value on it until maturity and there is no dss deduction for life assurance.

It should only apply from the point the cheque was in the bank account.

trafalgar_2

Surely they can only take it back to the date of maturity,not two-years.
By poll-tax I take it you mean council-tax

jamesann

yes council tax dif name same tax
i think she must have had more in the bank than she should have since they want back dated cash still strange them coming the same day as the cheque arrived
jim