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NSI Index Linked Certs

Sorry if already answered but NSI bereavement info useless -but does anyone know how NSI Index Linked Certs are treated after death?

  1. Is interest still paid?
  2. Is there a penalty for early encashment?

I spoke to the NSI help line and was told that no interest is credited after death. I find this surprising and google has turned up conflicting answers. I need to use some to pay IHT - and was wondering on the timing of using them (if they pay interest and annual date is soon may be worth waiting a bit).

Thanks
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