Scottish Friendly- Old penny death policy death value

KaRo1986

I was hoping to get some advice. My Grandfather passed away in February, and we have come across 2 old policies with Scottish Legal Life assurance society. One Juvenile and one Adult policy. These polices were taken out by my Great-Grand Mother, the first in 1935 and the second in 1944. The value 'assured' on these policies on reaching a certain age, pre-decimalisation was around £14 and £15.

They initially could not find the policy in their archives, so we sent copies. They still could not find the policy and requested the original copy, which we followed with.

We have since had a letter where the policy had been paid out. The Grand sum of £5.05.

We have since been in contact to try to understand the sum they have paid out. They have said.... that they were paid up polices which meant no premiums were paid after the 18th of December 1952. At this time, they acquired a small paid up value of £2.53 and £2.52 which was paid on the death of our Grandfather.

They then list their paid up policy certificate reference. Then they say- The Values quoted on these were prior to decimalisation therefore the values paid are correct.

Has anyone had any experience in this situiation or can shed any light. We really didn't expect the policy to pay out that much, but £5.05 seems a bit of an insult.

We also sent the original copies as they requested, and as they say have paid out (sent a cheque, not been cashed yet) we do have copies but not of all the small print. Does anyone know where we stand to ask for these back to get advice about the terms and conditions and payout.

Any information/advice would be much appreciated.

Thanks!

magpiecottage

"Paid up" means that they policyholder did not continue the premiums to the end of the policy. As not all the premiums were paid, the insurance company cannot be expecte to pay the full value of the policy.

So one paid out two pounds £2 10s 7d and the other £2 10s 5d. - a total of £5 1s 0d

However, in terms of value, £5.05 might buy you 10 Mars Bars now.
At the end 1952 it would have bought you over 300. (At the beginning of 1952, I think the sugar would have still been on ration but I am not that old).

Either way, you have no further claim against the insurer and the matter predates the jurisdiction of FOS by over 50 years.