LV life insurance payout difficulties

Helenm66

I am having difficulties receiving payout from LV after making a claim re my mother passing away.  Have called 4 or 5 times, 2 hour wait each time, at first I was told it would be paid out within next 5 to 7 days, after that time passed, I was told it would be made a priority, then I was told the money Had been sent to my building society who would also be another 5 to 7 days for clearance.  Had my building society search for funds but not been received by them.  Now when I call LV saying they are in training,it’s all very shady.  Has anyone had similar experience?

dunstonh

Has anyone had similar experience?

Not personally.   

Your timeline isn't clear.   Are we talking days later than expected or weeks or months.

Was the policy in trust or not?
If not in trust, who was the policy owner?

Policies in trust or where there are joint policy owners where one of the policy owners is still alive pay out much quicker than policies where the ultimate beneficiary is unclear or requires the Will and/or Probate to be settled before they can release the funds.       Payout timescales have been as quick as a week but if probate is required you could be talking up to a year (probate is normally quicker but has been slower since covid).

it’s all very shady.  

Not really. Its more likely down to call centre staff not really knowing what the actual status of the plan is and what current service standards are.  That is not an excuse for poor service. Just an explanation of the likely reason.

And ironically, having a poor service standard (usually due to lack of staffing) usually results in more work as more people are repeating calls that they wouldn't need to make if service standards were better.

It is also worth noting that insurers tend to quote working days rather than actual days.  Building societies do tend to have a longer clearing cycle than banks. 

Helenm66

I would have to say that the customer service is appalling, and you’re probably right, down to lack of knowledge/staff shortages etc, but have become more worried by the comment last received from Lv staff member that the money was no longer with them.  I haven’t had a lot of dealings with LV so can’t compare it to anything, certainly wouldn’t be rushing to give them any business.  My own building society has always been very good so hoping it’s some freakish delay.  Just such a stressful time, but thanks again for help

kingstreet

Does your BS account have a sort code number and account number, or will the payment go through a clearing bank first?

For example, Nationwide has its own sort codes starting 07---- but Stafford Railway credits have to pass through HSBC clearing before they reach an SR account. It's the same with many smaller building societies.

Helenm66

To the best of my knowledge straight to BS, no mention of a clearing bank, although given my experience so far I can’t rule this out.  I think if they had said from the start it’s going to be at least ......., honesty always best, I have enough experience over my own working life to know not to make promises I can’t keep, it just rubs people up the wrong way