Brazenly mislead by Life Insurance Company

[harry.potless]

Hi,

 

I need some advice, please.

 

Long story short:

 

Met a girl and fell in love.

 

Married in 1987. Was blessed with a child almost a year to the day, later.

 

Decided we needed some life insurance.

 

Took out a policy (not the cheapest).

 

Divorced 18 years later but kept policy on.

 

Lost my job in 2006 and struggled on with policy.

 

Unable to meet payments anymore, late 2009.

 

Was contacted by Company and when I explained I couldn't afford it any more, I was informed that they would put it "on-hold" for up to 12 months and that it was now (then) considered to be "paid up". There was a surrender value of some £2,500 that I could leave where it was or claim it whenever I wanted.

 

I left it where it was (so that I wouldn't be tempted to fritter it away). I also hoped to obtain work and restart the policy which I was informed I could do, provided I left the cash in there but that I would not be able to, if I "cashed it in".

 

A few months later, I was contacted again and informed that the policy had now "lapsed" as my fund was exhausted.

 

Seems that, contrary to my understanding, they had continued drawing the monthly payments from the surrender value until that was exhausted.

 

Can they do that? (despite not having made it clear that that was their intention - in fact, when I asked if I could leave the surrender value with them until a later date, they had said "yes").

 

I can't believe that, having been informed of my (and my family's) dire financial straits and despite them already having been paid c£500 per month for over 20 years, they still "milked" me for the last drop.

 

Any advice greatly appreciated.

Edited February 28, 2011 by harry.potless
Forgot something

[harry.potless]

Just came back to review this and see that "Google Search" have already been and had a look.

 

Does Google track EVERY post on EVERY bulletin board?

 

Makes Big Brother (George Orwell's - not Channel 4's) look like an amateur setup.

 

Browned-off with being treated like a pawn/victim.

 

Someone should tell Google et al that "with great power comes great responsibility".

 

Never read your daughter's diary, is my motto.

[honeybee13]

Hello there. Yes, I believe a life assurance company can use the surrender value to pay premiums, usually in order to keep the life cover going. But you say they told you it was Paid Up. Do you have that in writing?

 

My best, HB

[harry.potless]

Hello there. Yes, I believe a life assurance company can use the surrender value to pay premiums, usually in order to keep the life cover going. But you say they told you it was Paid Up. Do you have that in writing?

 

My best, HB

 

Hi Honeybee,

 

Thanks for taking the care to respond.

 

Yes, I have it verified in August of 2009 that the Policy is in a "Paid Up" status but am further informed that I can reinstate the Policy within 13 months, provided I repay all missing premiums. I was also advised that what that all means is that, "because you're not paying in, you don't have any Life-Cover as such, but you have a monetary value in there....that you can claim at any time".

 

In March, 2010 I received another communication stating that "the plan has now been surrendered" (so much for the 13 months grace period).

 

When I queried this and asked for my "surrender value" I was only then informed that it had none as the monies referred to earlier had been used to continue paying into (what I had previously been advised was a Paid-Up") the Plan.

 

Any ideas on my course of action, at all?

 

Thanks again,

 

Harry P.

Edited February 28, 2011 by harry.potless
Addendum

[honeybee13]

I agree that doesn't sound right and that maybe they didn't make your policy paid up when they said they had. I'm guessing, have never done this type of work.

 

Have you gone through the company's complaints procedure? I would do that first, then look at maybe the fos if you're not happy.

 

My best, HB

[Conniff]

 

Does Google track EVERY post on EVERY bulletin board?

 

Yes, they have the best crawlers in the business that's what makes them the top search engine.