Life insurance payout help please?

Hiddenidenity

Sorry this is quite long I will try to cut it short.

OH was involved in a RTA last year and passed away. We both had life insurance which took a while to deal with why they waited on the reports etc from the police to confirm it was an accident. All fine and the money was eventually paid out before Xmas.

In the mean time I have been quite unwell and in hospital and not been able to deal with post etc as I've been over 300 miles away from home.

Anyway I was eventually allowed home from hospital Friday after a stay of over 10 weeks. Went to the bank and the funds from the insurance are now "held"

Between contacting the bank/insurance to find out why this happened apparently more evidence has come to light about the RTA leading to the conclusion it was OH fault.

Does this mean I have lost the insurance etc?
Someone is calling back this week but I'm really concerned

Sorry its so long and rambled

dzug1

Hiddenidenity wrote: »

All fine and the money was eventually paid out before Xmas.



the funds from the insurance are now "held"

On the face of it those are contradictory statements - I don't see how both can be true


Not quite sure why fault would matter anyway

Hiddenidenity

dzug1 wrote: »

On the face of it those are contradictory statements - I don't see how both can be true


Not quite sure why fault would matter anyway

The money was released and paid into my bank account before xmas..

Now the money in the bank is "held" not available any more and when I called the bank for an explanation i was told to call the insurance company.

Which is how I found out about the new evidence etc. I haven't been well enough to drive home for mail etc but hoping to this week.

I dont know why fault would matter either? I have no clue at all when it comes to any of it tbh. All they could say on the phone last week was that new evidence had come to light and the police had reopened the investigation (originally the other driver was arrested for death by careless driving.. which now seems it wasnt his "fault" but my OH)

warwicktiger

I am not a qualified financial advisor, but did work for a major UK Life assurance company for 20 years.

"Fault" should not be an issue, the only circumstance I can think of could be a"Suicide Clause" Sometimes such a clause could be written into a life policy until the mid 1990's where the Life covered had a relevant history. I would call the Life Company 1st thing Monday and ask the relevant questions.

Where the policies taken out by a still active financial advisor? If so they might be able to help.

Hiddenidenity

warwicktiger wrote: »

I am not a qualified financial advisor, but did work for a major UK Life assurance company for 20 years.

"Fault" should not be an issue, the only circumstance I can think of could be a"Suicide Clause" Sometimes such a clause could be written into a life policy until the mid 1990's where the Life covered had a relevant history. I would call the Life Company 1st thing Monday and ask the relevant questions.

Where the policies taken out by a still active financial advisor? If so they might be able to help.

Thank you, yes the FA is still active I will give him a call on Monday too.

I'm panicking if this will have an effect on the house etc too. I suppose I cant really be sure until I speak to the insurance company etc

Thank you for replying

madbadrob

It sounds to me like the insurance company paid out believing their insurer was at fault for the accident and since then they have been given new information suggesting that this is not the case. To have the money frozen they would have had to ask the court to do this. It may well be in the future that this is rejected and the original payout reinstated however it may be that it wont be rejected and so they get their money back they have frozen that money.

With regards insurance on the house etc if this is to pay off the mortgage on the death of one of the owners it shouldnt have an effect at all because only a suicide or murder by the other interested parties would affect that in my opinion and without sight of the policy

ROb

securityguy

Life insurance is independent of fault. All that matters is that the policy holder is dead (assuming that the beneficiary isn't suspected of murdering them, and assorted other edge cases that don't apply here).

However, compensation payable through a car insurance policy will usually be dependent on fault; if the accident is your fault, you get nothing, although your passengers might.

Is the OP sure they aren't getting confused between life insurance and other forms of insurance?

Hiddenidenity

Hi no its def the life insurance, i didnt think there was a claim on the car insurance to be made?

The suicide thing worry's me. I know when we took out our life insurance he disclosed of a previous attempt (before we where together).

I plan on calling first thing tomorrow

Thanks again for all the replies