company life insurance

jayjaymcd

I am wondering if you can help me. I recently lost my dad who had life insurance through his employer. He had paid extra for additional cover. The company he works for changed systems recently and have since said he is only entitled to the basic insurance as he was no longer paying the extra since they changed companies. They said they informed people via a letter and that he had to opt in again. i have since asked if my dad had ever signed in to the system and he hadn't.
This seems strange as he had never had to opt in previously only the first time he set it up a few years back. Do i have a leg to stand on for trying to claim more ?

thanks

jonesMUFCforever

How was the insurance paid for?
Have you checked his pay slips?
This would/should show deductions which might include life premiums.

dunstonh

This seems strange as he had never had to opt in previously only the first time he set it up a few years back. Do i have a leg to stand on for trying to claim more ?

When employer's change benefits and make things optional, then the default position is that they opt into those benefits (the exception being the pension).

If the employed moved from a defined benefit scheme with death and service to a money purchase scheme with a group life assurance attached to it then the latter does normally become optional if the employer is not willing to pay for it any longer.

If you dad was paying for it then he should get it. If he wasnt then he won't. If there is nothing to suggest he opted into the new scheme then sadly that will be viewed that he did not opt in to it.

jayjaymcd

thanks for replying.

my dad was opted in for a few years before and paying extra each month to get 4x salary. His employer changed the system in December 15 and he must never of got the information as he was not opted in automatically on the new benefits system. Surely if he opted in once and you shouldnt have to opt in every year (he hadnt before)
He must of thought he was still in the company scheme were he paid extra.
if i opt in once i have to opt out not opt in every year.
He passed in April hence the frustration as it was 4 months after the system changed.

thanks

dunstonh

my dad was opted in for a few years before and paying extra each month to get 4x salary.

4x salary is the most common level for a death-in-service benefit linked to a defined benefit pension.

His employer changed the system in December 15 and he must never of got the information as he was not opted in automatically on the new benefits system.

Most defined benefit schemes have closed over the years and people moved to schemes that are not as good.

Surely if he opted in once and you shouldnt have to opt in every year (he hadnt before)

it wasnt a case of opting in on the original. Defined benefit schemes are all or nothing. No options. The newer scheme had options.

He must of thought he was still in the company scheme were he paid extra.

Sadly that is something that is unlikely to ever be known.

He passed in April hence the frustration as it was 4 months after the system changed.

The problem with anything in life where a line is drawn in the sand is that someone will always be just the other side of it.

jayjaymcd

Hi

" t wasnt a case of opting in on the original. Defined benefit schemes are all or nothing. No options. The newer scheme had options"

No he did opt in. The standard company one was 1x but he paid extra (life buy) each month to be covered for 4x . It was only when they changed the system that his payment must of stopped :-(

dunstonh

No he did opt in. The standard company one was 1x but he paid extra (life buy) each month to be covered for 4x . It was only when they changed the system that his payment must of stopped :-(

Ok. More unusual but possible. However, it still doesn't help as he was given the choice with the new package. Unless you find something that shows he opted in or was paying towards the new package then as far as the audit trail shows, he didnt opt in.

jayjaymcd

if it helps i dont think the insurance company is to blame. I believe it to be a company issue with regards to them changing their systems and not informing the staff correctly. Other people in the company also say they remember no letter/info regarding this change.
He was in until 'they' changed something and now he is out. However, had the old system been in place he would of got 4x

if he never logged into the system and they didn't chace him/tell him which they didn't do i have a right to complain?

thanks

dunstonh

if it helps i dont think the insurance company is to blame. I believe it to be a company issue with regards to them changing their systems and not informing the staff correctly.

It is unlikely to be the insurer. Normally with changes like this, the employer will pass responsibility to an administrator. The administrator handles all admin between the employee, employer and insurer.

Other people in the company also say they remember no letter/info regarding this change.

Maybe the employer should be asked how many opted into the new scheme arrangement? If some did, then it would indicate choice was offered. If none did, then it would suggest a failing.

if he never logged into the system and they didn't chace him/tell him which they didn't do i have a right to complain?

The executor of the estate has the right to complain. However, you cannot make claims about what may or may not have been said. You can say that other employees have also said that they were not given the option. This could trigger a review and can be said as it is factual that they have told you this.

Whilst logging into a system may have given more info, there would have been paper information supplied.