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Policy payout interest due?

edited 30 November -1 at 12:00AM in Insurance & Life Assurance
5 replies 661 views
PzulbaPzulba Forumite
7 posts
Second Anniversary First Post
edited 30 November -1 at 12:00AM in Insurance & Life Assurance
Back in April my SiL died suddenly (aged 51), so obviously a PM was required

Following PM a death cert was issued and funeral proceeded, cause of death was believed to be Meningitis; but not yet determined waiting on Lab tests etc

Funeral went ahead but Life insurance payout delayed re above (& possibly due Policy was taken out as part of employment package within last two years)

Official cause now determined as Meningitis and payout received this week

Payout received was the Nominal amount due on death and no interest from date of death to date of payout - is this correct

Can’t help feeling that someone has been sat on Payout from original claim date till actual payout and running up interest to their account

Comments please

Pzulba - Out of Africa (Retired)

Replies

  • ValiantSonValiantSon
    2.6K posts
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    Why would you expect interest?

    The insurer has settled the claim once they had a definitive cause of death. That's the end of the matter.
  • edited 22 July 2018 at 12:46AM
    PzulbaPzulba Forumite
    7 posts
    Second Anniversary First Post
    edited 22 July 2018 at 12:46AM
    Yes I do, OK I accept that they could holdback the payout whilst awaiting confirmation of cause of death, but surely they are holding the funds on initial notification and providing no problems (as in this case) they should pay interest for the period in question

    If he had died as result of say car crash the funds would have been released immediately, but as death was result of obscure medical condition and there was a clause to cover events such as pre-existing or suicide!!! They have rightly held up payment, but once clarification obtained the funds should be released as per date of claim and interest (in this case 3 months) should be paid!!!


    Pzulba - Out of Africa (Retired)
  • paddyandstumpypaddyandstumpy Forumite
    1.5K posts
    Eighth Anniversary 1,000 Posts Name Dropper
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    Nope. Doesn't work like that.

    If there was a fatal car crash and cause of death was obvious, then yes; you would have received the money faster.

    But that doesn't entitle you to interest because they took time in validating there was a claim.
  • edited 22 July 2018 at 12:09PM
    ValiantSonValiantSon
    2.6K posts
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    edited 22 July 2018 at 12:09PM
    Look, it's simple, no interest is due. The money wasn't yours until they authorised payment, so no interest could be earned on it.

    Just accept that you are wrong.

    You came looking for an answer to your question. You got an answer, but you didn't like it. Life is tough. Move on.
  • dunstonhdunstonh Forumite
    104.2K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Can!!!8217;t help feeling that someone has been sat on Payout from original claim date till actual payout and running up interest to their account

    How long was the gap between the official cause of death being determined and the payout
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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