How do I find out the history of a financial product?

WhiteCircle

Hi,

My late mother had what we thought was a life insurance policy with the Co-op/CIS. This was then acquired by Royal London and seems to have been converted into a 'Platinum Bond Plus'. My mother was claiming Pension Credit, so from what I understand, the DWP will now class this as undeclared income and claim back on this accordingly. However, I believe they can't do this if it's an insurance policy? 

So my main question is, how do I find out the history of this product so I can show that was taken out as a life insurance policy (if that is, in fact, the case)?

(I've already asked Royal London but they are slow replying)

Thank you!

DullGreyGuy

https://www.royallondon.com/existing-customers/contact-us/co-operative-insurance-society 

The Platinum Bond Plus is a hybrid investment/assurance product 

WhiteCircle

Thanks, I saw that too. Still not sure if DWP will class it as life insurance or a bond. She never received income from it. From what I understand, if it's life insurance, they won't demand money back from the estate. But if it's a bond, they can claim the lot... 

dunstonh

My mother was claiming Pension Credit, so from what I understand, the DWP will now class this as undeclared income and claim back on this accordingly. However, I believe they can't do this if it's an insurance policy? 

With investments in the insurance wrapper, the capital value is not included in any means test.  However, if the investment is used to provide an income, then the income drawn can be included.

i.e. if she had £200,000 in the insurance wrapper and was drawing £100pm from it then the £200,000 doesn't get declared but the £100pm does.

So my main question is, how do I find out the history of this product so I can show that was taken out as a life insurance policy (if that is, in fact, the case)?

You don't need to know the history.  You just need to know the product type.  It wouldn't change from the outset.

WhiteCircle

Thank you so much! That is so useful to know. There's only £32k in there at the moment (waiting for probate) and she never drew from it. I'm looking at the documentation and she could only draw 5% per annum from it which she never did.

dunstonh

 I'm looking at the documentation and she could only draw 5% per annum from it which she never did.

Technically, she could draw what she liked.  However, 5% was the amount that could be drawn without triggering a chargeable event (i.e. no tax at that point).