Life Assurance Policy

mills112

My FIL said he had this old life assurance policy with the North British & Mercantile Insurance company, which google says was taken over by Commercial Union, which has now become Aviva.

Reading the policy certificate, it seems to indicate that it is a life assurance policy that only pays out on the death of the policy holder on or before 23.11.1987

Anyone got knowledge of these policies or documents and can confirm my understanding?

If I am correct then it is no longer of any use?

MyRealNameToo

Yes, it's a term policy. Massively cheaper than whole of life assurance, normally set to expire when your mortgage is paid off, your kids are 21 or when you are planning to retire etc and so the financial difficulties other would be left with in the event of your passing has gone away. 

On the basis it was a decreasing term its likely have been done to cover a mortgage but doesnt have to have been

Marcon

The policy was 'terrm' rather than 'whole of life' so possibly he took it out to provide cover for a mortgage, while his children were still young or similar. It's of no value since he is still alive long after the policy expired.

mills112

Marcon said:

The policy was 'terrm' rather than 'whole of life' so possibly he took it out to provide cover for a mortgage, while his children were still young or similar. It's of no value since he is still alive long after the policy expired.

He said it was my MIL that took it out and he wasn't aware of it.  He only found it the other day and told my husband about it!  I am a bit concerned that she took out a life insurance policy on him without his knowledge    I hope she wasn't planning to bump him off 

dunstonh

mills112 said:

Marcon said:

The policy was 'terrm' rather than 'whole of life' so possibly he took it out to provide cover for a mortgage, while his children were still young or similar. It's of no value since he is still alive long after the policy expired.

He said it was my MIL that took it out and he wasn't aware of it.  He only found it the other day and told my husband about it!  I am a bit concerned that she took out a life insurance policy on him without his knowledge    I hope she wasn't planning to bump him off 

It is an industrial branch policy.   These were small value plans sold by door to door insurance agents.  In this case, a decreasing term assurance (typically used with a mortgage or covering a debt).

He probably was aware of it but seeing as it was almost 60 years ago it is likely he has forgotten.   The questions asked back then would have been just a handful, and his wife could have answered them, and he was just told to sign what was put under his nose.

mills112

dunstonh said:

mills112 said:

Marcon said:

The policy was 'terrm' rather than 'whole of life' so possibly he took it out to provide cover for a mortgage, while his children were still young or similar. It's of no value since he is still alive long after the policy expired.

He said it was my MIL that took it out and he wasn't aware of it.  He only found it the other day and told my husband about it!  I am a bit concerned that she took out a life insurance policy on him without his knowledge    I hope she wasn't planning to bump him off 

It is an industrial branch policy.   These were small value plans sold by door to door insurance agents.  In this case, a decreasing term assurance (typically used with a mortgage or covering a debt).

He probably was aware of it but seeing as it was almost 60 years ago it is likely he has forgotten.   The questions asked back then would have been just a handful, and his wife could have answered them, and he was just told to sign what was put under his nose.

yeah, my MIL used to deal with all the finances so she probably suggested that they get this and he just agreed to it without paying much attention to it and then forgot all about it.

she passed away recently so he was looking in the files and found it but could not remember taking it out and told my husband that my MIL must have taken it out.

he found another one that he thinks his mother may have taken out for him, but that was a whole life policy so i wanted to check this wasn't like the other one.