AIBU - life insurance policy, incorrect advice?

[Lonelybutnice]

As much a WWYD as an AIBU.

We found an old life insurance policy taken out by my late mother in law. I called the provider today and was transferred to several different departments as the policy is relatively old (taken in 1993)

Eventually spoke to somebody who advised me that my MIL would need to write to them. I explained my MIL was deceased (I had explained this to a previous advisor but understand not all info can be divulged when transferring calls)

Advisor then umm-ed and aah-ed a little and said 'it looks as if this account has been terminated'
She sounded unsure so I tried to clarify 'so my MIL terminated this account before she died?'
Response 'I think so, yes.'

Of course I understand that they don't try to avoid paying out but I felt this advisor was unsure and keen to get me off the phone. WWYD?

Write to them, formal letter, detailing the insurance policy. Attach a photocopy of the policy and MIL's death certificate. Ask them to investigate the 'claim'. Keep copies. This should be done by whoever is executing the estate.
It may be there is a claim, but your Mil may have stopped paying for the policy and there may be no claim. Ask them to look into it.
Sorry for your loss.

Who was the executor of your MIL's will? Surely they should deal with this?

The advice to write to them is spot on. The policy is probably on an old computer system or possibly microfiche or even paper so it's difficult for an advisor to work out what has happened with it. Writing to them will give them an opportunity to gather all the policy information and check it properly before replying.

Of course I understand that they don't try to avoid paying out
This is exactly what they do.

You need to write to them and get all the information. Presumably your MIL will have stopped paying when she died so the dates should match up.

This is exactly what they do.

That's unfair. If it's a life insurance policy and the insurer receives the necessary documents (death certificate and information about who is the beneficiary) then they will pay. It's a legal contract and the industry is heavily regulated to ensure that policyholders are treated fairly - and on top of that, people who work in life insurance are not evil people but people like you and me (definitely like me, as I work in life insurance, as you might have guessed ), who generally try to do the right thing.

This is exactly what happened to me with an old insurance policy my mum took out before she passed away. I wrote in with all the reference numbers and dates and a scan of insurance document. It was all fine and they paid out.

It sounds as if the advisor was unsure (she's only human) and she let you know.

She wouldn't have been trying to get out of paying out on the policy. Why would she? Share options?

Get all the paperwork you have and contact them via email or recorded post. This should all be sorted very easily.

See DadDadDad you might not be like this but a good friend of mine has worked in insurance for 20+ years, he's told me all claims first response is denial, yes most are resubmitted and a lot get it paid, but first response is denial.

See DadDadDad you might not be like this but a good friend of mine has worked in insurance for 20+ years, he's told me all claims first response is denial, yes most are resubmitted and a lot get it paid, but first response is denial.

I worked in life insurance till recently and this is complete bollocks.

Yes, when a policy pays out on death, and someone provides you with the legal document showing the insured person has died, there's not a lot of mileage in trying to resist the claim!

We make money not by helping ourselves to policyholders' rightful funds (we'd be closed down if we did), but by providing an efficient service, turning around a claim as quickly as possible and not getting into complaint / ombudsman / bad press territory that will cost us money and reputation.

Maybe the friend who worked in insurance was in a different line, eg motor, where naturally you don't agree to pay out until liability has been established, but that's a very different process.

Ah gotcha DadDadDad makes sense. Hard to dispute death.

He works in health & life insurance (in the US) so yep a bit different no doubt. He and I have talked about critical illness cover before and that is deny first, information later. It's one of the big boys there he works for.

He works in health & life insurance (in the US) so yep a bit different no doubt. He and I have talked about critical illness cover before and that is deny first, information later. It's one of the big boys there he works for.

Which company? I am also in the US and until recently worked for one of the big companies.

The idea that the companies deny every claim initially is ludicrous, particularly a 'big boy' company.

GlitteryPoop is talking bollocks. No UK insurer would get away with that behaviour, believe me.

OP - provide a copy of your MILs death certificate and proof of who the personal representative(s) if the estate will be (copy of the will showing the executors, or proof of next of kin I.e marriage cert if it’s FIL or birth certs if it’s her DC).

Old policies can take a bit longer to trace (files may be on microfiche or stored off site) and may not be on the system so the company may take some time to trace it. Equally if a company had been taken over by another, they might not have all the information immediately available.

Ask them to confirm whether there is any sum payable on her death, or to confirm when the policy was surrendered or reached its expiry

Ps, sorry for your loss

YouCantGetHereFromThere I'm not going to say which company on here. He told me with a shrug and a 'that's just how it is' kind of way. I do know his wife has a huge amount of hassle with medical insurance. She puts in, they deny, she appeals, then it gets ok'd. This has happened so many times, and they have what's considered good medical insurance through the company he works for.

Violetroselily well aren't you charming.