Life Assurance Question?

mr_perfect

My father in law was diagnosed with what turned out to be a terminally cancer in May 06 last year and had a life policy with Prudential at the time. Unfortunately is illness made him unable to work and hence his payments for his policy because he had another with Scottish Widows and could not afford to pay for both without any income being earned.
Sadly he died in June 07 but I was thinking would he have still been covered with Prudential in any way....? If he was diagnosed terminal when he had the policy, would it still be valid, even though he stopped paying.
I am being very speculative but hope someone can advise and how how can approach this with the Pru.
Thanks

Ian_W

I was hoping someone with an insurance background would pick-up on this one but at least this will bump you up the board.

I don't wish to be critical of your FIL. God knows what what goes through someone's mind when they're told they have a terminal prognosis, and I hope I don't find out any time soon, but lapsing any life assurance when you know you're going to die wasn't a very good call. Appreciating he had money problems, he'd have been better begging or borrowing from family to keep up the premiums but that's little help now.
I hope I'm wrong but I really can't see any way Pru will pay out as your FIL effectively reneged on his side of the bargain, all you can do is ask.

One thing you might want to check carefully is the policy wording. I've had quotes for life policies [not critical illness cover] in the past which have a provision to pay some of the sum assured early if there is a terminal diagnosis, usually only a %. I'm not saying his will, I'd have thought that would have been realised at the time, but worth checking.

Sorry I can't post anything more helpful.

mr_perfect

Thank you for the prompt curteous repsonse - what you have to say is very helpful and I will check the wording very carefully and as you say 'ask'. Regards

Stu420

I work for an assurance company, Its not prudential however several of our brands do offer earlier payments (normally the full sum assured) for terminally ill policy holders with death benefit, I would refer to your policy documents as everything he was covered for will be detailed there. if you no longer have the policy documents it would be best to contact the servicing Financial Adviser for the policy, as they will be the only people who can access specific policy details due to Data Protection Act (unless someone has Grant of Probate).

If your father in law is does have Terminal illness cover, and diagnosis was made before the policy lapsed the the claim would be valid for assessment.

hope this helps.