What happens to lapsed policies?

Project

Any advice will be appreciated. I am struggling to know what happens to money paid for the different types of insurance and assurance policies when they lapse.

Some years ago, after my husband and I had both been made redundant, we could no longer afford to pay a number of policies. Consequently, they lapsed.
I understand the concept of paid up and we were informed that some policies such as pensions were paid up, so we still get statements. The companies that sold us some other policies, sent warning letters, but when they stopped we heard nothing more. We have kept the paperwork, but are unsure whether or not it is worth following up the policies. Time is limited as I am currently concentrating on things that have a good cost/time benefit such as reclaiming PPI, mis-sold loans and services. It is amazing how long this process takes, particularly, when past employers fail to provide information without repeated chasing.

dunstonh

Lapsed is the term used when a policy ends due to non-payment or other reason before the the of the term and no value is payable.

but are unsure whether or not it is worth following up the policies.

as lapsed policies have no value, there is nothing to follow up on.

Project

So as long as I have confirmation that they are lapsed, I can ignor them. That's what I thought, thank you for the confirmation.

By the way, I agree with a lot of what you have said in relation to financial products, but most of us have only recently become clued up about most financial products. When we earned good money we fell for all the selling techniques and the advice from the Government to invest in private pensions. We were over insured and had investments that were worthless, or under performed when we needed the money. Most of the money was just wasted. Thank goodness we have most of our money invested in our house. (As long as we aren't forced to sell in the current market).

Children need to have a financial education, so that they can avoid falling into the same traps that earlier generations fell into.

dunstonh

By the way, I agree with a lot of what you have said in relation to financial products, but most of us have only recently become clued up about most financial products. When we earned good money we fell for all the selling techniques and the advice from the Government to invest in private pensions. We were over insured and had investments that were worthless, or under performed when we needed the money. Most of the money was just wasted. Thank goodness we have most of our money invested in our house. (As long as we aren't forced to sell in the current market).

I think a lot of it depends on the distribution channel you buy from. I rarely come across anyone that is over insured and no-one that I have advised has lost money. Yes there have been periods of short term loss but that is normal but the advice is to see through them and that is what people do. Banks typically have the most expensive products and the poorest quality investments. I frequently see naff products which are obsolete and well past their sell by dates but these are usually mail shots, DIY or old insurance agent products which should have been replaced years before (a bit like buying a black and white TV but expecting it to be up to the job in the widescreen plasma HD world).