life cover payout problems

adamcarvell

hi my daughters partner passed away sudenly at the age of 29 they have one child with one on the way.
they wasn't married and had no will living together for over three years.
they took out life cover jointly plus some other ones both named on the joint policy this was to pay all or most of the mortgage off should one them pass.
this awful event happened just over a week ago.
legal and general have said because no will or married he died in interstate and that the payout goes to the children not my daughter but we can appeal this how do we appeal this please where do we start?.
 

Keep_pedalling

Joint policies usually pay out to the survivor on the first death. We’re there no named beneficiaries on the policies?

adamcarvell

it was two names no children were born at the time of taking the cover out. i don't understand tbh.

Robin9

Did the policy name the mortgage provider as the beneficiary and not your daughter ?

adamcarvell

no the mortgage company wasn't on the policy just the two people who took the policy out.

msb1234

the policy may well have been a joint policy that paid out on the first death, but unless it stated who the beneficiaries were, then it goes into the person’s estate. If he had no will, his children will inherit it. 

adamcarvell

msb1234 said:

the policy may well have been a joint policy that paid out on the first death, but unless it stated who the beneficiaries were, then it goes into the person’s estate. If he had no will, his children will inherit it. 

Can that be changed on appeal we are talking one little one and another on the way? 
i  don't understand it doesn't pay to the one that's left  as they were both named on the policy there's nothing in the policy saying they should be married or have a will.

adamcarvell

The amount of cover will reduce over time. Decreasing cover is often used to help protect a repayment

mortgage. We apply an interest rate to the original amount of cover to estimate the amount that you repay

each month on your repayment mortgage and the amount you are covered for will decrease accordingly.

If the interest rate we apply is less than the interest rate that is actually applied to your mortgage, or your

mortgage changes, the amount we pay out may not be enough to repay your mortgage in full.

We have applied an interest rate of 8.0% .\

says there about the mortgage.

poppystar

The intention that this should be there to cover and pay out on the remaining mortgage seems very clear from this wording. Speak to L&G about how your daughter should appeal. Was this a policy advised by their mortgage company? If so, it may be worth speaking to them. Ir is L&G the mortgage provider as well as the insurer? 

adamcarvell

no mortgage is nationwide.

poppystar

So definitely ask your daughter (although I appreciate she may not be in a good place to do this at the moment) who recommended the policy or, if you can, go through all the paperwork from when the mortgage and the policy was taken out. Look for anything that clearly shows that this was put in place to pay off the mortgage not to simply pay out to beneficiaries of the estate. If it was recommended by Nationwide then speak to their bereavement department too.