N&P Endowment Incorrect Payments?

stewvic240

Hi,
My Mum has recently finished paying an endowment policy that was originally set up with a mortgage in the 80s. My parents divorced, not amicably, in the 90s, and my Dad left. The endowment was in joint names, as was the mortgage. However during their divorce arrangements it was agreed that my Mum would have the mortgage transferred into her sole name. As the endowment included life insurance, also in joint names, my Mum wanted to have my Dads name removed from the endowment also as she was the only one now making payments. This took a long time for her to achieve, I think she ended up writing to the Chief Exec before it was resolved. So my Dads name was eventually removed as a beneficiary to the endowment, and she's not really thought about it since. Now the endowment has matured and she has come to take the money out, but in looking through the paperwork she had realised that she has been paying life insurance payments for both herself and my Dad, even though she would not have benefitted should anything have happened to him. Is this right and would she have any redress for the unnecessary payments she made?

dunstonh

As the endowment included life insurance, also in joint names, my Mum wanted to have my Dads name removed from the endowment also as she was the only one now making payments. This took a long time for her to achieve, I think she ended up writing to the Chief Exec before it was resolved.

It should never have been achieved. The normal thing to do with endowments is to assign them. Not to actually physically alter the policy.

Now the endowment has matured and she has come to take the money out, but in looking through the paperwork she had realised that she has been paying life insurance payments for both herself and my Dad, even though she would not have benefitted should anything have happened to him. Is this right and would she have any redress for the unnecessary payments she made?

This sounds like it wasnt actually altered as you suggested but assigned which is what should have happened. The premiums should not change and despite assignment, the life assurance continues. Had your dad died, the policy would have paid out to your mum. You cant alter an endowment policy without creating potential tax issues and rewriting the policy. All assignment does is allow the benefits to continue but assign the benefits under maturity or claim to the named person (your mum).

She has not made any unnecessary payments and there is nothing to reclaim.