CIS InsurancePlease adviseI am a pensioner 67 years and have recently lost my mother 94 yearsfuneral 7/11/2013I am attending to her estateAmong her papers I came across an insurance policy with C.I.SIt is a Whole Life Assurance With Profits. Periodical Endowment. Adult (Own Life) Policy and was taken out on the 27th November 1944There is a Premium receipt book showing that an agent would home visitand collect payments - the last collected payment was July 2002.I contacted CIS sending the death certificate and other relevant information.After awhile I received correspondence. I was informed of the value £412.52pBUTwill only be paid out if the payments had been paid upto her death.She had paid from the opening of the policy upto July 2002 which is 57 yearsShould there be a 'pro rata' payment or are they within ther rights not to pay outregards

I think these policies only pay out if you continue making the monthly payments up to death. If you stop the payments, the policy ends and you get nothing following death. From what I read, some of these policies offered terrible value for money.

Perhaps your mother realised in 2002 that the policy was not worth it. I think CIS stopped making doorstep collections around that time, so maybe your Mother did not want to set up a Direct Debit to continue the policy.

HiMany thanks for responseDo you think I am wasting my time by writing to the financial ombudsman.I feel that after 57 years of paying she deserves some payment.Shortly after the final 2002 payment mother was admitted to a 'home' with first stage dementiaWe paid the post office for 6 months postage forwarding and never received any correspondence from C.I.S.regards

Hello there.

I don't know the ins and outs of the policy obviously, but I think it's possibly worth speaking to the ombudsman. Have you had an explanation of the periodical endowment bit? That's new to me.

My best, HB

HiMany thanks for responseDo you think I am wasting my time by writing to the financial ombudsman.I feel that after 57 years of paying she deserves some payment.Shortly after the final 2002 payment mother was admitted to a 'home' with first stage dementiaWe paid the post office for 6 months postage forwarding and never received any correspondence from C.I.S.regards

That is the choice of whoever is the executor or person responsible for your Mothers estate. But they would need to complain to CIS first and give them the opportunity to resolve. It really is up to CIS to provide a full response, with details of the policy.

I have since read that actually some of these policies may have had some value, if the policyholder surrendered the policy, before they died. I am not sure whether stopping the payments, is the same as surrendering the policy.

The problem many companies have is that they will have gone through so many IT system changes over a period of time. I suspect your Mothers policy records have been archived years ago. The current staff working at CIS may have little knowledge of policies that were taken out nearly 60 years ago. A written complaint is the best way forward, so that CIS have a chance to look at this properly.

Hello again.

I found this on the CIS/Royal London website. As you're talking about a traditional with profits policy, I was surprised that there wasn't any kind of paid up value. Have they mentioned anything about this please? HB

Paid up

A policy becomes paid up when a customer is no longer paying premiums.

If this is sooner than allowed for by the policy, then the sum assured is

reduced in line with the payments that have already been made.

I am not sure whether stopping the payments, is the same as surrendering the policy.

Hello UB.

Surrendering the policy means receiving its cash value from the insurance company. If you stop paying but don't cash it in, it's a paid up policy.

HB

HiOriginal Policy InfoSum Assured £36:00Lunar Monthly payment 5 shillings (25pence?)Periodical Endowment £10:00 end of every 5th yearregards

Thank you for that.

Have they mentioned how their periodical endowment works please? I can't find anything on them, but I'll have another look at the CIS website.

Have they mentioned paid up values or why there isn't one in your mum's case please?

HB

Hi SORRY for the delay. As advised I dealt with C.I.S. direct - The result of which is that they have PAID out on the policy. The monies are now confirmed to have been transferred to our account. I woud like to thank you all for the help/advice you gave.regards

Brilliant, well done.

Would you be able to tell us a bit more about what happened please? I'm interested to know and you could help other caggers with the information.

HB

I contacted CIS via claims form from their Internet site, which I completed and sent via recorded delivery with an original copy of the death certificate.After awhile I received correspondence. I was informed of the value £412.52p BUT informed it would only be paid out if the payments had been paid upto her death.She had paid from the opening of the policy 1945 upto July 2002 which is 57 years. As she had not paid for 11 years and noting their response to my claim I assumed they would not pay out.I then wrote to this site requesting help / advice.Should there be a 'pro rata' payment or are they within ther rights not to pay out regards.As your suggestions I decided to contact CIS direct before involving the Ombudsman.You were correct when you mentioned CIS stopped making doorstep collections around this time. They advised that my mothers policy was too costly to administer for the amounts involved and had come up with a final settlement amount which we found acceptable. I had to reclaim forwarding the claim to the department I spoke to on the phone. (they had requested futher information)I can not pass comment on the 'unpaid 11 years - I assume they have waived it - or may have even offered us less than what they would have normally paid.I have now received a cheque which has 'cleared'Once again many thanx for help givenregards

Thank you for that. It shows it's worth persisting.

HB