Sum assured and event (wording)

deutsch

I was digging up some documents for my parents and I found what looks like Life Assurance for a mortgage. I'm not sure how to interpret the sum assured. If someone with experience can shed some light please?

This the policy wording below:

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The sum assured:
"££,£££ payable on the survival of the Lives Assured to dd/mm/yyyy (The Maturity Date) or on the death of the first of the lives assured to die before that date."

Premium:
"££ payable monthly, the first falling due on dd/mm/yyyy and ceasing with that due on dd/mm/yyyy or on the death of the first of the Lives Assured to die, if that should occur previously"

Special Provision:
"In the event of the death of the first of the Lives Assured to die during the currency of this Policy the amount payable will not be less than ££,£££ providing that the attached bonuses, if any, have not been surrendered and that the policy is in full forces."

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The special provision ££,££££ definitely covers the mortgage.
The sum insured ££,£££ is 56.1% of the mortgage cover. Both my parents survived the mortgage ending. Are they owed money?

dunstonh

Sum assured is what will pay out in the event of death unless the investment value is higher (if it is investment backed).

Both my parents survived the mortgage ending. Are they owed money?

Has the policy matured or is it still in force?
If matured, what did they do with the maturity value? (potentially they would have used it to repay the mortgage?)

deutsch

dunstonh wrote: »

Has the policy matured or is it still in force?
If matured, what did they do with the maturity value? (potentially they would have used it to repay the mortgage?)

The maturity year was in 2005 which is also when the mortgage was paid / cleared.

I remember they had an endowment. The value was less than what was expected (I guess due to market conditions) so they had to pay a little extra to clear the mortgage. The endowment isn't something to do with this is it?




I don't want to disclose figures from the life assurance schedule (ignore my wording of endowment above for now), so lets say that:

The special provision is 100%.
The sum assured shows 56.1% of the special provision.
The premium paid x 12 months x 15 years = 69.82% of the special provision.

TrickyDicky101

Looks to me like standard Low Cost endowment wording - it is absolutely linked to the endowment.

dunstonh

The endowment isn't something to do with this is it?

The wording is consistent with a low cost endowment.

It could be a mortgage endowment or a savings endowment but I suspect mortgage endowment as savings endowments had a much smaller sum assured. Mortgage endowments would have had a sum assured that matched the mortgage.