When somebody close to you has died and you need to deal with an insurance company, the last thing you need is to be faced with lots of technical jargon.
The aim of these pages is to help you to tell us everything that we need to know in order to update our records and deal with any financial implications.
Unfortunately, sometimes we have to use technical words in our forms and letters so we can correctly settle your claim. To help you, we have produced a Glossary which explains some of these technical words.
We have also produced a set of Questions and Answers. These cover some of the common questions we are asked, and they provide additional guidance on completing our Claim Form.
When claims are made against pension policies, a Deceased’s representatives may have some extra duties. Although the majority of people will be unaffected, we have explained these duties at the end of this guide.
We hope you will find this guide useful, but if there is anything you do not understand, or if you need help with your claim, please call us. If the query relates to a Self Employed Retirement Plan call 0845 887 4569, for all other Pearl policies please call 0845 880 0088.
Important note for claimants
Once we have become aware of a death, we have two years in which to pay any lump sum benefit due under a pension policy. Please ensure that you provide any additional documentation or information we may request, so we can make payment within the two year period.
If payment has not been made within this two year period, there may be adverse financial consequences. Please see question 13 for details.
How to tell us about a death
This is a two step process. It is important that you follow both steps so that we can ensure that your claim is dealt with as efficiently as possible.
Step 1 - Notifying us of a death.
If you have not already done so, it is very important that you notify us of the death of anyone named on a Pearl policy, whether that is a life policy, a pension or an annuity.
When someone who is named on a Pearl policy dies, we need to update our records to make sure that no more correspondence is sent to them, and to pay any claims arising or stop annuities that are being paid. Sometimes, the person who has died will be the policy holder, but not the life insured, so although we still need to update our records to transfer the ownership of the policy to someone else, we won’t make any payment until thelife assured dies.
Often, however, a payment is due, and our Claim Form needs to be completed and returned to us, along with a number of other documents, so that we can decide to who this payment is to be made.
To tell us about the death of one of our customers, you can either use our online form or alternatively you can call us. If the call relates to a Self Employed Retirement Plan call 0845 887 4569, for all other Pearl policies please call 0845 880 0088.
Please make sure that you have the full name, date of birth and date of death to hand. If you have any policy or plan numbers, that would also be useful. Please also give us all of your details so that we can contact you again.
Step 2 – Making a death claim.
After you have notified us, we will need to receive a completed claim form that can be downloaded here. Please read the rest of this guide to make sure that we get everything we need to update our records and settle any claim arising from the death. If you have any questions, check whether they’re covered in the question and answer section. Otherwise, please call us and we will be happy to help. If the call relates to a Self Employed Retirement Plan call 0845 887 4569, for all other Pearl policies please call 0845 880 0088.
The claim form
Please read these notes before completing the Claim Form, which can be downloaded below.
Please complete all applicable sections of the claim form and provide as much information as you can, as any missing information may delay any payment due.
Death Certificate
An original Death Certificate is required. Photocopies are not acceptable. The Registry Office where the death was registered can provide further original Death Certificates if required, for a fee. For deaths outside the UK please see the Question and Answer section below.
If the deceased held a Pension policy and had dependant(s), please send us the original certificates. We cannot accept photocopies.
Please send these documents, together with the completed Claim Form, to:
Deceased Claims,
The Pearl Centre,
Lynch Wood,
Peterborough
PE2 6FY.
When we receive the form we will check that we’ve got all of the information that we need and will return any original documents to you as soon as possible. We will then update our records and process the claim.
Please note that we cannot calculate whether there is any claim value until we receive the original Death Certificate.
Responsibilities Of The Legal Personal Representative(S)
On 6 April 2006, new tax rules covering all pension schemes and arrangements were introduced by the Government.
One of these rules limits the overall level of tax-privileged pensions which an individual can hold. This limit is known as the Standard Lifetime Allowance (SLA).
If the limit is exceeded, a tax charge, known as the Lifetime Allowance Charge, is made against the excess.
The limit is very high and few people are expected to be impacted by it. However, to ensure tax is collected, where appropriate, HM Revenue and Customs have placed some specific responsibilities on the Deceased’s Legal Personal Representative(s) which are outlined below. Further details can be found on HM Revenue and Customs website www.hmrc.gov.uk.
The Legal Personal Representative (LPR) must:
1. Check to see if the Deceased had pension rights which, in total and from all sources (except State pensions), exceeded the Standard Lifetime Allowance.
To do this, the LPR can request, from each pension scheme and provider of the Deceased, details of how much of the Deceased's Standard Lifetime Allowance:
a) has been used, where pension benefits were taken prior to their death; or
b) will be used, where benefits are due to be paid because of their death.
The pension scheme or provider must respond within 2 months of the request and they will show the amount as a percentage of the Standard Lifetime Allowance.
For example, if retirement benefits had been taken on 10 April 2009 and, prior to death, from a personal pension scheme with a fund of £175,000, the scheme would advise that 10% of the Standard Lifetime Allowance had been used by them (because £175,000 is 10% of the £1.75 million Standard Lifetime Allowance which applies for the 2009 / 2010 Tax Year).
If a separate pension scheme is, for example, due to pay a lump sum of £350,000 because of the Deceased’s death, the scheme would advise that 20% of the Standard Lifetime Allowance will be used by them (because £350,000 is 20% of the £1.75 million Standard Lifetime Allowance which applies for the 2009 / 2010 Tax Year).
2. If the total of the percentages provided by all of the Deceased’s pension schemes and providers is less than 100%, then no Lifetime Allowance Charge will be due and the Legal Personal Representative can handle the Deceased's pensions assets without reference to HM Revenue and Customs.
In the above examples, if the two pensions referred to were the only ones the Deceased had, then the total of the percentages would be 30% (10% + 20% = 30%). Because this is less than 100%, the Legal Personal Representative would not need to refer to HM Revenue and Customs.
The vast majority of individuals are expected to fall into this category.
3. If the total percentage exceeds 100%, then the Legal Personal Representative(s) is required by law to:
a) advise HM Revenue and Customs that the Deceased had pensions rights in excess of the Standard Lifetime Allowance; and
b) provide HM Revenue and Customs with full details of each person who has received benefits from the Deceased’s pensions because of his death, and full details of the benefits they have received.
On receipt of the information, HM Revenue and Customs will calculate what tax is due. They will seek that tax from the recipients of payments from the Deceased's pension arrangements. The Legal Personal Representative(s) should advise the recipients accordingly.
Depending upon the options available from the Deceased's pension arrangements, it may be possible to reduce, or even remove entirely, the amounts which are subject to the Lifetime Allowance Charge.
If the Legal Personal Representative(s) fails to advise HM Revenue and Customs when required to do so, they will be subject to fines and tax charges.
We recommend that you approach your financial adviser for assistance. There may be a charge for their advice. If you do not already have an independant financial adviser, you can find one via IFA Promotions, whose contact details are given in the ‘Useful contacts’ section above.
NOTE – If you are not the Deceased’s Legal Personal Representative, please pass this information on to the person, or persons, who are taking on that role.
Pearl Assurance plc is authorised and regulated by the Financial Services Authority. Pearl Assurance plc is registered in England No. 1419 Registered Office: The Pearl Centre, Lynch Wood, Peterborough PE2 6FY Important Company Registration and Legal Information.
