Old savings with life assurance found

Danien

My husband has mental health issues due to Asd and is bad at managing his finances.

I opened a letter yesterday and it was a statement for an old savings/life assurance plan that he took out in 1980. On quizzing him about it, he said his parents arranged it all and had adviser come to the house and arrange it. He says he 'cancelled' it not long after, but it seems he only cancelled the payments, but assumed the whole thing was cancelled. In the meantime the amount he paid in has been invested all this time.

It states the cash in value on the statement.

I am rather shocked as we claim benefits due to my terminal illness (he is my carer) and this should have been declared when we applied. I'm obviously letting them know now. My benefits knowledge tells me that any plan with life assurance is disregarded as capital for income based benefits. Please could someone with more recent knowledge either confirm this or put me right?

We will be cashing it in as it is under the capital limit and will provide a cushion for my husband while family help him sort out his benefits when I pass on.

dunstonh

I am rather shocked as we claim benefits due to my terminal illness (he is my carer) and this should have been declared when we applied.

The life assurance tax wrapper is exempt from any means tests until you draw the money.