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To qualify or not?
Has an endowment policy that had unpaid premiums become non-qualifying?
A 25-year endowment policy was taken out in 1990 with a life assurance company (Company A). Premiums were paid by cheque on receipt of a quarterly invoice. The company stopped issuing quarterly invoices from December 2008 and premiums were unpaid until the matter was brought to our attention in June 2010, at which time all premiums and arrears were paid up to date.
To qualify or not?
Has an endowment policy that had unpaid premiums become non-qualifying?
A 25-year endowment policy was taken out in 1990 with a life assurance company (Company A). Premiums were paid by cheque on receipt of a quarterly invoice. The company stopped issuing quarterly invoices from December 2008 and premiums were unpaid until the matter was brought to our attention in June 2010 at which time all premiums and arrears were paid up to date.
Company A has stated that under the terms of the policy they were able to allow the policy to continue for a period of time by using some of the policy value to pay the unpaid premiums. They also admit that due to their error they did not lapse the policy after 12 months and that cover was allowed to continue so that there was...
