Surely this isn’t right!

Bounty1

Apologies if this is the wrong place for this.

I have a friend who took out a life assurance with Abby life £28,900 payable on death, permanent disability or diagnosis of critical illness. He has been told that due to administration costs there is no money left and the account holds no further benefits!

He did have an accident and was kicked in the face by a horse, causing permanent disability but hasn’t been able to claim

Can anyone advise please

comeandgo

Was he still paying into this policy?

dunstonh

I have a friend who took out a life assurance with Abby life £28,900 payable on death, permanent disability or diagnosis of critical illness. He has been told that due to administration costs there is no money left and the account holds no further benefits!

The old Abbey Life plans went obsolete around 1995. However, they do the job they are intended for. Just not very cost effective by modern standards.

They had an investment element. The theory was that if returns beat the target amount, the future increased costs of life assurance could be paid for out of the investment returns. Problem was that he economy moved from a higher inflation, frequent boom/bust to steady, low inflation and low growth and these plans couldnt get the returns needed.

So, every 5 years (from a starting point that was after 10 or 15 years) they would review the premiums and ask the person to pay more or reduce the sum assured (or a combination). Some people would also stop them and replace with a modern alternative or not replace at all and let them lapse.

He did have an accident and was kicked in the face by a horse, causing permanent disability but hasn!!!8217;t been able to claim

Was the policy still in force when this happened or had it already ended?