Zurich life insurance

Chris1388

We’ve recently lost my FIL who had a whole life plan with Zurich and a guaranteed sum of 20,000. 

Zurich are now claiming they will only pay out 11,000 to my widowed MIL. 

We’ve had no explanation despite asking and just keep receiving communication that’s states “our position hasn’t changed”

she’s grieving and stressing over this so trying to help and relieve the stress as much as poss. 

Help! 

Voyager2002

The 11,000 should be enough for immediate costs, so she should relax and stop stressing about it.

You should write to them saying that you accept the 11,000 as an interim payment, and request a calculation of the amount of the payment and why it is different from the "guaranteed sum". Unless you receive a reasonable explanation, write saying that you are making a formal complaint and pass the matter to their complaints team.

DullGreyGuy

Chris1388 said:

We’ve recently lost my FIL who had a whole life plan with Zurich and a guaranteed sum of 20,000. 

Zurich are now claiming they will only pay out 11,000 to my widowed MIL. 

We’ve had no explanation despite asking and just keep receiving communication that’s states “our position hasn’t changed”

she’s grieving and stressing over this so trying to help and relieve the stress as much as poss. 

Help! 

Whole of life policies are normally written with reviewable premiums, it's often guaranteed for 10 years and then reviewed every 5 years but does vary by product. 

So when a review occurs it will be calculated if things are over/under performing, how mortality risk has changed etc etc. Assuming it's under performed you are then given two choices, either increase your premiums to maintain the same payout or reduce the payout to maintain the same premiums. Normally there is a default that if they dont hear from you by X then they'll reduce the payout. 

Ultimately she will need to speak to them but presumably at least 1 review has occurred and either your FiL decided to reduce the sum insured or didnt respond so got the default reduction. 

dunstonh

We’ve had no explanation despite asking and just keep receiving communication that’s states “our position hasn’t changed”

That wording suggests they think they are responding to a complaint.  Its not the sort of language you would expect from the call centre staff answering an enquiry.

Zurich are now claiming they will only pay out 11,000 to my widowed MIL. 

Most of these WOL plans are over 20 years old.  If it is an ex Allied Dunbar plan (as many Zurich plans are) then even older.    If this one is, then its probably had at least one review point (typically after 10 or 15 years then every 5 years thereafter).  Possibly several.   At each review point they would have offered an increase in premiums to cover the £20k sum assured or keep the same premium and lower the sum assured.

If you are relying on the point of sale documents showing £20k, then almost certainly that was superseded by changes at the review points.