Q. My father passed away about 20 years ago. Mam owned the house, but a few years ago she sold it and moved in with me. My siblings and I got a few bob from the sale, and some went to pay off a few debts she had. When she sold the house, a neighbor agreed to hold onto some of her personal items. Mam passed away last year, and I’ve arranged to collect those bits. I’ve discovered now there were apparently life policies for both my parents. I don’t know if she ever took steps to cash in Dad’s policy, or whether she continued to pay her own policy. I’m not sure where to go. I don’t know if she ever made a will.
Dear Reader,
The first thing you should do is to obtain a copy of your parents’ death certificates. Your solicitor will liaise with the insurance company to ascertain whether the policy remains valid, whether it has ever been cashed in, and confirm its value. Your solicitor/financial advisor will advise you as to the nature of the policy. Certain policies, for example mortgage protection policies, would bring no benefit to you or your family.
Whether or not your mum’s policy remained in place will depend on a number of factors. If it was a term life policy (i.e. a policy that becomes payable only on her death), then a failure to discharge premiums as they fall due would cause the policy to lapse.
If it was a whole life policy (i.e. a policy she could have encashed at an earlier date) and there had been unpaid premiums, there would have been a sum ringfenced. The insurance company would have been entitled to deduct fees and charges from that ringfenced sum.
As regards your dad’s policy, the company will be able to confirm if had been encashed. If the policy was for a specific length of time, it should be claimable for five years after expiration of the policy. If the policy was not for a specific length of time, a limit of 15 years from the last communication would apply. After this time, the funds would be paid to the Dormant Account Funds with the National Treasure Management Agency.
When it comes to ascertaining who might be entitled to funds depends on the nature of the policy, and any will your parents would have made. You should make enquiries with any solicitors they had dealings with. You should also carefully check her papers, in case she had retained a copy of any will.
If the policy has lapsed due to non-payment, your solicitor should try and liaise with the insurers as regards notification to the policy holder. It occasionally transpires that due and proper notification that the policy is to lapse was never furnished. If that is the case, then the matter can be brought to the Financial Services Ombudsman.