CR24 Funeral Insurance – status of “life assured”

• Funeral Insurance – status of “life assured”

In another case the complainant claimed payment on the policy by virtue of the death of his grandmother. The insurer responded by pointing out that although the complainant was an additional life assured and the premium payer, he was neither the policyholder nor a nominated beneficiary. No payment was accordingly due to him by virtue of her death. Although he was the premium payer the policy devolved, in the absence of his nomination as a beneficiary for ownership, on the estate of his grandmother. Accordingly he was also not permitted to demand the cancellation or surrender of the policy. The insurer advised him that it was up to him to negotiate with the estate for a cession of the policy to him in which event, on his death, the policy would devolve on his estate. We agreed with the insurer’s approach and declined to uphold the complaint.