Why is change needed?

There are many legal issues to be resolved when someone dies and, depending on the circumstances, this can mean that it takes a long time for life insurance companies to be able to pay out the proceeds. People who have lost loved ones often have to wait months for life insurance payments. The new guidance cuts out the lengthy legal process and means people will get the money in weeks rather than months. The legal process can lead to worry at an already very upsetting time, and can cause financial hardship. It is generally more straightforward with a joint policy because the surviving policyholder is usually legally entitled to the policy proceeds which therefore don’t get caught up in the legal process of winding up the deceased person’s estate. So, in the case of life insurance, the delays are typically associated with policies taken out by one person on their own.