Is my Life Insurance valid

MikeyB1968

I recently called my ins co, to make a beneficiary change on my personal life insurance. I was told that the Trust Documents were not completed in full, I have however, been paying approx £205 per month since early 2016 for this insurance. 

Their email reply to me is as below:

"Please find attached a copy of the original Trust documents.

Unfortunately, they are not valid, and the plan is currently not in Trust.

Our legal team has reviewed the Trust document and found that it contains an incorrect plan number and lacks the necessary signatures to validate the trust.

It appears this form was mistakenly accepted in 2016."

I now longer wish to carry on with this company because of this error as I have been thinking, would I have been covered if there ever was a claim? They had also listed the beneficiary details totally incorrectly also.

How do I stand to go forward and complain about this to them directly? Would I be entitled to any compensation for this error?

Thank you.

DullGreyGuy

MikeyB1968 said:

I recently called my ins co, to make a beneficiary change on my personal life insurance. I was told that the Trust Documents were not completed in full, I have however, been paying approx £205 per month since early 2016 for this insurance. 

Their email reply to me is as below:

"Please find attached a copy of the original Trust documents.

Unfortunately, they are not valid, and the plan is currently not in Trust.

Our legal team has reviewed the Trust document and found that it contains an incorrect plan number and lacks the necessary signatures to validate the trust.

It appears this form was mistakenly accepted in 2016."

I now longer wish to carry on with this company because of this error as I have been thinking, would I have been covered if there ever was a claim? They had also listed the beneficiary details totally incorrectly also.

How do I stand to go forward and complain about this to them directly? Would I be entitled to any compensation for this error?

Thank you.

You have been covered just the insurance wasnt in a trust and so would have formed part of your estate had you died (unless the beneficiary is your spouse). 

The error is ultimately whoever completed the trust forms, it was a secondary error that the insurer didnt spot the errors but they are only the second line of defence.

Ayr_Rage

How did you not notice the incorrect beneficiary details for 8 years?

Have you asked them how they intend to fix the trust issue and how they intend to compensate you for their mistake in accepting the form?

You'll need to make a formal complaint and see what they offer rather than relying on random opinions offered here.

Keep_pedalling

Ayr_Rage said:

How did you not notice the incorrect beneficiary details for 8 years?

Have you asked them how they intend to fix the trust issue and how they intend to compensate you for their mistake in accepting the form?

You'll need to make a formal complaint and see what they offer rather than relying on random opinions offered here.

I would think once excepted it would be something you never check again. 

I would hope that the policy can now be put in trust as the OP wants if that is the case they will have suffered no loss.

HappyHarry

MikeyB1968 said:

I recently called my ins co, to make a beneficiary change on my personal life insurance. I was told that the Trust Documents were not completed in full, I have however, been paying approx £205 per month since early 2016 for this insurance. 

Their email reply to me is as below:

"Please find attached a copy of the original Trust documents.

Unfortunately, they are not valid, and the plan is currently not in Trust.

Our legal team has reviewed the Trust document and found that it contains an incorrect plan number and lacks the necessary signatures to validate the trust.

It appears this form was mistakenly accepted in 2016."

I now longer wish to carry on with this company because of this error as I have been thinking, would I have been covered if there ever was a claim? They had also listed the beneficiary details totally incorrectly also.

How do I stand to go forward and complain about this to them directly? Would I be entitled to any compensation for this error?

Thank you.

As explained above, the policy was put in force and would have paid out the same regardless of whether or not the trust was in place.

However, the proceeds would have been paid to your estate rather than a trust.

Luckily, the error has now been spotted, and you have the option to now place the policy in a trust. There has been no financial harm so no compensation will be due, though you may get a small goodwill gesture from the life company for the error not being picked up earlier.

Cancelling this policy and taking out a new one with a new provider is likely to be more expensive, as you are older than you were when your current policy was taken out, and there may be health issues now that were not present eight years ago.

Your best option is to now put this policy in trust and see if you can get a small goodwill gesture from the life company.

kingstreet

Who completed the trust form?

dunstonh

How do I stand to go forward and complain about this to them directly? Would I be entitled to any compensation for this error?

Who completed the trust forms?   Life companies rarely have liability for putting the plan in trust and generally accept what they are given.   It is not uncommon for errors to be spotted after the event (it's not common, but it's not rare either).

As there has been no financial loss and a trust can be put in place now, there is no reason for any compensation to be paid.  However, if a regulated individual put the trust in place and didn't get it right first time, then a goodwill gesture of putting it right now and perhaps £25 would be the ballpark expectation.    It probably doesn't need a complaint and may get resolved better if you went directly to the individual that put the trust in place first.   However, if they don't play ball, then you can take it to complaint.