expired

Lizann_2

hi..looking for a bit of advice. My hubby has always been in control of his own finances, however he has been very unwell this year and by chance I was going through some paperwork when I realised that his adaptable pension had matured when he was 60. ( in January). This had substantial life cover with it which has decreased by £140000. He was always satisfied that he would leave me provided for and I would be sure he would be devastated if he knew that the life cover would be reduced so much when the pension matured. On checking his bank statements I find the direct debits stopped after January. Is it possible to restart the pension and would the life
cover be increased again.

xylophone

https://www.zurich.co.uk/zurichintermediary/openwork/solutions-and-services/legacy-products/pensions/app.htm

Is it one of these?

brewerdave

If he has been "very unwell" can't believe that the insurer is just going to reinstate much high level of cover.

Lizann_2

Thanks for reply..on looking at the link it looks pretty much like it.

AnotherJoe

Well that specifically states that life assurance once expired can't be reinstated and given the terms of the deal are it diminishes at age 60 no doubt for actuarial reasons to keep cost low what possible reason would they have to extend it outside the terms of the deal ?

I hope your husband gets better that would be the time to reinstate though life assurance typically wouldn't be the way to "assure your future" that anyway it would be by getting his pension. Do you know what proportion of the pension is payable to you in case of death?

Lizann_2

Hi AnotherJoe - I thought his pension would automatically come to me . I am so not up on these things. I will look into it.
The pension in itself wasn't a great amount and the reason he kept it on was the life cover element .
Perhaps he should just take it now it has matured .. I don't know:undecided
Unfortunately he wont get better.. he has been diagnosed with his condition for a long time but it the last few years where it is going downhill

Malthusian

What is the current fund and transfer value of the pension?

Until he is 75, if he dies the fund value can be paid to a nominated beneficiary (probably you) tax-free.

This is entirely speculation, but you may not have lost as much as you think in terms of the life cover. Often the "life cover" pays the minimum of the fund value or the life cover. So if for example the life cover is £140,000 but the fund is £100,000, you only lose £40,000 of sum assured by letting the cover lapse. It could be on top of the fund value but this is less common. Anyway, as others have said it's gone and can't be reinstated so there is no use crying over spilt milk.

If he is, sadly, very likely to die, then the best thing to do is probably going to be to leave it where it is. On his death you should get the whole of the fund value tax free. On no account should he "take it" if by that you mean buy an annuity.

You should get him to ring Zurich and check if he has made a nomination for the death benefits. If he hasn't made a nomination or kept it up to date, there's a possibility it could be paid into his estate (which could incur totally unnecessary Inheritance Tax) or even to someone else altogether (e.g. ex-wife). The recipient is at Zurich's discretion so in theory they can ignore an obviously out-of-date nomination, but it's best not to leave these things to chance.

dzug1

Do you have Power of Attorney for him? Best get it whilst he remains fit to give it - if it's not already too late

You may find some companies will not discuss his affairs with you without one.

Lizann_2

Thanks for the advice Malthusian I will get him to ring Zurich and check that I am named.
Also I would need to check paperwork but I think pension was only just over £10k hence the reason he kept it up for the good life cover. [ which is now about £9k ].

Lizann_2

Thanks dzug - I will do that

atush

Is this his only pension? Do you have one?