Serious warning regarding life insurance

heyjude

Registered User
Mar 27, 2008
25
0
Following the death of my mother in law from dementia we were left with quite a mess.

Her finances had to be taken over by a trustees appointed by the local council/social workers. They were totally legal and above board, used by Sheffield City Council.

She had paid her life insurance policy for over 20 years and when the trustees paying her bills tried to change the bank account for 2 insurance policies relating to her life insurance one company accepted this with no bother this was Aviva and reset up a new account the other Abbey Life consistently refused to accept payment from what they said was a third party and cheques were duly returned. Her trustees wrote giving full reasons and offering evidence form Doctors, Social Workers, Solicitors and the local council of her dementia and their legal responsibilities towards her and all were re buffed.

The result of this was the lapse of the life insurance policy, we cannot help but think that Abbey Life knowing how ill she was deliberately and consistently tried to be obstructive knowing she was close to death and tried to avoid paying out on her policy. They succeeded.

This case is currently with the Financial Ombudsman.

All I am saying is check your policies before it is too late to see if your insurer accepts payments from a third party if anything should happen to you or your loved ones and what they would do in the event of a diagnosis of dementia.

If this helps one person it has been worth the post.

Thank you.
 
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Padraig

Registered User
Dec 10, 2009
1,037
0
Hereford
heyjude,

That's good advice. However if there was one thing I learned early in life (I'm self educated) it is to have nothing to do with Insurance Companies. The only insurance I pay and have for years is car insurance.
When our son was born in the early1950s I was sold an insurance policy by the man from the 'Pru'. He came round weekly to collect the 'two and sixpence.' The policy matured on our son's 16th birthday and we collected £100; a lot of money in those days. But I figured out if I'd have saved that money in a building society I'd have received interest on the money over the years and received a lot more.
The only insurance I was compelled to pay other than for a car was for the short period I had a mortgage. Then I chose to take a bridging loan from my bank to clear the mortgage. Instead of paying house insurance, contents insurance and life insurance I save the money myself.
Have you considered how much it costs to run the Insurance Companies' adverts on TV, newspapers and the sports sponsorships, not to mention their large offices. It's all payed for by the policy holders!
My answer has been to make arrangements, to ensure that our son and daughter are well provided for before and after my death. Our son is the executor of my will. I've ensured that one third of my property belongs to them for the past 8 to 9 years.
I appreciate that there are many people who have little option but to take out insurance, but I'd like to think this will give then some food for thought.
 

heyjude

Registered User
Mar 27, 2008
25
0
Please folks check your policies I am sure there are other 'Abbey Life's' out there, we are close to getting a decision from the Financial Ombudsman, if they do not find in our favour Abbey Life can be assured they will get some bad publicity, they cannot do this to those with dementia it is truly disgraceful. The people appointed to look after her affairs were totally legit.

My husbands Mother always paid everything on time she came from an age where this was 'what you did'. I do believe she would 'turn in her grave' if she knew what had happened to all her hard work, it was something she was so focussed on.
 

geum123

Registered User
May 20, 2009
4,604
0
What an appalling thing to happen, after your Mum has paid in.
I hope the Financial Ombudsman say she should be reimbursed.
Thank you for posting your warning here.

The internet is wonderful for getting this sort of information out.
 

heyjude

Registered User
Mar 27, 2008
25
0
If anyone who reads this does check their Abbey Life policy and they do find this clause, especially if they have been paying a policy for 20 years or more I would love to hear from you. I worry that they may have changed the policy without notification.
Thank you.
 

heyjude

Registered User
Mar 27, 2008
25
0
We have heard from the Financial Ombudsman and it would appear they are going to find in our favour.

That said they have said they we can expect Abbey Life to defend the decision very strongly indeed and we must 'manage our expectations'.

I think this could go on a while yet.
 

heyjude

Registered User
Mar 27, 2008
25
0
Abbey Life are refusing to pay, the Ombudsman's Adjudicator has reviewed the case again and still says they are being wholly unreasonable and were not acting in my Mother in Law's interest, as clearly she would have wanted the policy paid, yet still they refuse to pay out.

We are of course prepared to accept that we have to pay the policy for the lapsed time when they refused to accept payments.

The time scale has been extended to the 17th August and if they do not reply The Ombudsman will make a final decision that will take about a year!!!

So many of you on here are so caring and on such a difficult journey but has anyone any ideas about how I can get this out in to the national arena to heighten awareness and prevent others going through the same.

I will be honest it is not just that I want to stop others being ripped off by life insurance companies doing likewise but I want to loose Abbey Life as much business as possible.

We did take some advice from a solicitor who did say that the thought of bad publicity may make them reconsider.

Thank you in advance for your help.
 

lin1

Registered User
Jan 14, 2010
9,350
0
East Kent
Hi
Im sorry to hear the way that insurance company is treating you
I too think a bit of publicity will make them cringe .
Id contact one of the national newspapers .

First I must say I have no legal experience
as they refused to accept payment from a third party who were legally appointed to deal with mums finances , I dont see why u should have to repay any monies they refused to accept in the first place ,
I also think that u are entitled to some compensation and payment of any costs you have incurred
I hope u you get satisfaction soon ,
 

heyjude

Registered User
Mar 27, 2008
25
0
I am delighted to tell you all that tomorrow the BBC are coming to film us for the programme Rip Off Britain.

If we save one person's family from this mess then it will all have been worth while.

I just hope we are able to put over the point that with Dementia on the increase this will happen to more people more often.

At this stage we do not know when the programme will be scheduled.
 

christine_batch

Registered User
Jul 31, 2007
3,387
0
Buckinghamshire
Insurance Companies are a law unto themselves

Wishing you best wishes.

When Peter and I married he changed a policy where the £30,000 that went in he would receive each year £1,500 still leaving the £30,000 there.

When Peter passed away from A.S. I phoned the Insurance Company and I was told I have no claim on the money.

No wonder Insurance Companies have millions that are from policies not paid out.

Christine
 

BeckyJan

Registered User
Nov 28, 2005
18,971
0
Derbyshire
Your MIL will be proud of you fighting this although I am sure its the last thing you want to be doing.

I follow the Rip off Britian programme so will be interested to watch your case. I do hope the bad publicity helps your case.
 

Jancis

Registered User
Jun 30, 2010
2,567
0
70
Hampshire
Heyjude - well done for getting an interview with the Beeb!

I guess the reason the financial ombudsman will take a year to make a decision is because of the huge number of cases being investigated!

Good luck and hope to see the programme go out soon.
 

heyjude

Registered User
Mar 27, 2008
25
0
Filming over we just have to wait now, the series starts in October and runs for 20 weeks.
Thank you for your support and I hope you have all checked your life insurance policies.
 

heyjude

Registered User
Mar 27, 2008
25
0
We are delighted, the Ombudsman did not take a year to come to a decision, they made the decision this week and did find in our favour.We hope the BBC still runs the programme to high light this issue tho'.

So we now wait for the money and of course a donation will be made to this organisation for the great work they do.

I have also been inspired about what I see on here so much that I have applied to work for a local branch.

This morning just looking for this old post reminded me of our journey when you read the titles on the posts here there are just so many stages to this illness.

This morning also I want to send you all as much love and positivity as I can, there are no rights or wrongs in how you feel it is all part of the process.

Filming over we just have to wait now, the series starts in October and runs for 20 weeks.
Thank you for your support and I hope you have all checked your life insurance policies.
 

BeckyJan

Registered User
Nov 28, 2005
18,971
0
Derbyshire
I am delighted to hear your news - well done :). Thank you for starting this Thread and alerting us to life insurance and payment by third parties.

Please let us know if you hear that 'Rip off Britain' is to highlight your case.
 

Jancis

Registered User
Jun 30, 2010
2,567
0
70
Hampshire
I'm so pleased for you that the Financial Ombudsman has made a final decision. I am interested to know how soon Abbey Life pay up!!!
I have a case in the hands of the Legal Ombudsman at the moment. They have decided in my favour but the firm of solicitors are not even close to an agreement, think I'll be waiting a good few months yet.

Fingers crossed the Beeb will use your case on their programme. And good luck with your volunteering, that's wonderful.
 

heyjude

Registered User
Mar 27, 2008
25
0
At the moment they still intend to run the story but cannot give us a specific date as the series will run for 20 weeks.
We just want to make as many people aware as we can.

I am delighted to hear your news - well done :). Thank you for starting this Thread and alerting us to life insurance and payment by third parties.

Please let us know if you hear that 'Rip off Britain' is to highlight your case.
 

heyjude

Registered User
Mar 27, 2008
25
0
We have signed the acceptance and they have until the end of October to settle with us.
The Ombudsman has said we should get back in touch if they do not settle as they have to be bound by the decision.
We are getting 8% interest on the debt too.
I still feel there is room for something to go wrong after all that has gone wrong.

I'm so pleased for you that the Financial Ombudsman has made a final decision. I am interested to know how soon Abbey Life pay up!!!
I have a case in the hands of the Legal Ombudsman at the moment. They have decided in my favour but the firm of solicitors are not even close to an agreement, think I'll be waiting a good few months yet.

Fingers crossed the Beeb will use your case on their programme. And good luck with your volunteering, that's wonderful.
 

heyjude

Registered User
Mar 27, 2008
25
0
Abbey Life made us an offer yesterday, the acceptance form was posted back today recorded delivery.
Hopefully it is almost over now.
The letter started....we were sorry to hear of the death of your Mother..............well why put us through all this to avoid paying a life insurance policy, how heartless.
Glad we fought back.
We have signed the acceptance and they have until the end of October to settle with us.
The Ombudsman has said we should get back in touch if they do not settle as they have to be bound by the decision.
We are getting 8% interest on the debt too.
I still feel there is room for something to go wrong after all that has gone wrong.