Life Insurance Policies!

MrMurdock

Yep thread title is correct. I have just discovered that I have 2 Life policies, (yes I know I'm an idiot).
Long story short: the original policy was never cancelled when we moved house and consequentially mortgage providers. To save my embarrassment any further lets just say it was a while ago!
It seems my only option here is to cancel the original and probably lose any premiums paid. I am awaiting the policy documents from the insurers to find out exactly what type of policy it is and whether i can do anything to claim back anything at all. I believe it is a decreasing term type policy.
However it raises some questions in my mind:
Why have i not received any communication from the insurers, in the intervening period.
Why did it never get cancelled in the first place (certain this was cancelled at the time of changing mortgages).
Why was it not cancelled when the mortgage was effectively paid off?
Where is the duty of care from the insurers, Mortgage lender, Solicitors?

Any advice will be greatly appreciated. (Even if its, I'm screwed get over it )

Quentin

Had you not survived your estate would have received 2 payouts!

Mark_Bedford

dont know much about this sort of stuff - may be a question for Quentin....can you just ask the insurer for the premiums back if it was a mix up and you had two policies with the same insurer??

MrMurdock

Unfortunately there are not with the same insurer so naturally I don't think I am able to do it that simply.
However It won't stop me from trying.

Thanks

Mark_Bedford

you can sell these policies.....you wont get a fair value because the buyer has to make a profit....but it has value...how old are you if I may ask?

jonesMUFCforever

Mark_Bedford wrote: »

you can sell these policies.....you wont get a fair value because the buyer has to make a profit....but it has value...how old are you if I may ask?

You can only sell them if they are endowment policies not pure life ones.

BoGoF

Stop looking to blame other people. Why would it be cancelled just because you switched mortgage? Why would it get cancelled when your mortgage was paid off. Only person at fault herr is you.

Weighty1

I've got to agree with BoGoF.

Most insurers don't even let the insurance broker to cancel a plan to avoid the broker making an error and cancelling a plan inadvertently. As has been mentioned above, your family could have had 2 payouts if you had died with both policies running. The mortgage provider wouldn't even care if you had life insurance in place. The plans are to fit a particular purpose, they are not tied to the actual mortgage at all.

I'm afraid there is very little redress here for your error.

Weighty1

Mark_Bedford wrote: »

you can sell these policies.....you wont get a fair value because the buyer has to make a profit....but it has value...how old are you if I may ask?

No it doesn't! Endowments have a value and even whole of life policies have a value (even those without a surrender value) but term assurance plans, unless there is a very high likelihood of the life assured claiming due to serious ill-health for example, have little value. They provide peace of mind, that's it.

dunstonh

Yep thread title is correct. I have just discovered that I have 2 Life policies, (yes I know I'm an idiot).

I have three. Why does having two make you an idiot?

I am awaiting the policy documents from the insurers to find out exactly what type of policy it is and whether i can do anything to claim back anything at all.

Why do you think you could claim anything back? Both policies have continued to offer cover and would have paid out on death. i.e. doing the job.

Why have i not received any communication from the insurers, in the intervening period.

Has any event occurred that would require them to communicate to you? (probably not)

Why did it never get cancelled in the first place (certain this was cancelled at the time of changing mortgages).

Because you never cancelled the policy. No-one other than you can cancel it.

Why was it not cancelled when the mortgage was effectively paid off?

Because you didnt cancel it.

The life assurance is not linked to the mortgage. The insurer wouldnt know unless you told them.

Where is the duty of care from the insurers, Mortgage lender, Solicitors?

The insurer wont know unless you tell them
The lender wont know what insurances you have.
The solicitor wont know what insurances you have.

Many people keep their insurances running after the mortgage has been repaid.

Any advice will be greatly appreciated. (Even if its, I'm screwed get over it )

Time for you to take responsibility for your own action or inaction. Most people reconcile their bank statements on a weekly or monthly basis. That direct debit was going out each month. Plenty of times for you to see it.

Aretnap

MrMurdock wrote: »

It seems my only option here is to cancel the original and probably lose any premiums paid.

You also have the option of keeping both policies going. That way your family have more protection in the event of your early death. Sit down and work out how much cover you actually need - it will likely be different from what you thought jt was years ago when you got the policy(s). Then decide whether the two together give you too much or too little.

There is nothing inherently bad about having two life insurance policies. I have two - one taken out when I got married, another when we had a child and I realised the original one would need topping up.

Why have i not received any communication from the insurers, in the intervening period.

Life insurance is a boring product. There's not much to say about it. It doesn't renew annually. The premium doesn't change. Not does the sum assured, or if it does it's in line with a formula set out in the policy documents. You don't have to tell the insurer about changes in your circumstances. So as long as you pay your premiums it's not uncommon to go for years without communication.

Why did it never get cancelled in the first place (certain this was cancelled at the time of changing mortgages).
Why was it not cancelled when the mortgage was effectively paid off?

Presumably because you didn't cancel it. The insurance company would not know that you had paid the mortgage off unless you told them, and even if they did know it would be grossly irresponsible of them to cancel the policy without your say so - what if you were in poor health and we're unable to get an alternative policy?