Genealogy Chat

I have copies of correspondence from the executor of my great grandmother's estate. Apparently she had life assurance on her mother's life. The family wasn't well off, I'm wondering why would she have done this - perhaps she lent her mother money? My great grandmother died in 1946, the executor had to trace her mother and found out that she died just three years before, so the family weren't aware of her death. I know it was wartime, but surely families would have been able to keep in contact by post (all living in UK). If they didn't get on then why insure her life? Any ideas?

It was not unusual for people to cover parents lives. The sum assured was generally modest say to cover the cost of a funeral. If mother did not have much money this could well have been the case. How much was the sum assured? Lester

I do not know the sum insured, but know that the monies collected from the policy by the executor was £18:2:8. I don't know how that relates to the cost of a funeral at that time, however thats a valid point which you have suggested. My great grandmother was the youngest of three sisters, she moved away from the family home in London to work in service in Sussex when she was in her teens. She met & married my great grandfather and they made their home in Sussex. Her two sisters appear to have remained in London, my great great grandmother died at one of their homes. So my great grandmother seems to have been the least likely of the three to have insured her mother's life for this purpose. Perhaps then contact was differcult in the war. However if the policy was for this purpose, then the executor (who was my great grandmother's nephew) should have contacted his Aunt to reimburse her for funeral expenses which she would have incurred. Instead he included the money collected on the policy in the estate and it was distributed according to the will. I find it all very strange!

Hi, The sum Assured is about right and yes it would form part of the estate if it was not written 'in Trust' although from what you have said no death duties would have become due on her estate after her death. It is not as strange as you think indeed it was normal practice then. Regards, Lester

Sorry Lester, can I just check this with you. The proceeds of my great great grandmother's life poilcy were included in my great grandmother's estate as she was the one insuring her mother's life. If the policy was to pay for my great great grandmother's funeral - then shouldn't the proceeds have been used for this purpose? The executor should have reimbursed the person who incurred these expenses.

Well as I understand it without seeing the document you have two things: 1. The Life Assured your G G Grandmother 2. The owner of the policy your G Grandmother although she insured her mothers life it was up to her what she did with the payout. The above holds true if I am understanding you correctly. If not I live in Brighton so unless you live nearby you would have to send me the docs. regards, Lester

Lester - Yes that's correct. I do detect that this was not a close family, and feel that if the family had got on then the daughter who paid the funeral expenses would have been reimbursed I'm sure. Anyway, thank you ever so much for your help, it's much appreciated. It's good to know that there's like minded people out there willing to help one another out - Thank you!

I would say that it was extremely common practice in those days for anyone and everyone to have an Insurance Policy on someone's life. These were usually 'penny policies' - i.e. the cost of them was only a few pence a week, and held the promise of a lump sum when the insured died. This lump sum would probably be the only chance some poorer people ever had of a windfall and as I say, they were very popular. The Insurance Man came round weekly to the door to collect the pennies. You could insure the life of anyone - they didnt have to be a family member and if you were astute, you would choose someone fairly old, in the hope that they died quick and you would get your payout! It was up to you what you did with the money. The system was widely abused in the first half of the 19th century, with some people making a career out of insuring the lives of family members and strangers, then bumping them off. Others just invented people to insure and then claimed that they had died. The Insurance Companies were so alarmed at this widespread abuse of the system, that they pressed the Government to do something about it. As a direct result, a death could no longer be registered without a Doctor's death certificate, and Insurance Companies insisted on a Death Registration Ceritificate, not just a Doctor's Death Certificate, or even just the say-so of the claimant. I took out 'penny policies' on all my children and on my husband too, in the 60s, 70s and 80s. These were 10-year policies and gave a lump sum payout at the end of ten years if the named-life was still alive. They were sold to me as a way of making provision for the future education of my children but in fact I bought a dishwasher! Olde Crone

Thank you for your messages re penny policies. Now you mention them, I do remember 'the man from the Pearl' coming round to collect money when I was young. I just hadn't thought of them in the context of my enquiry, and would explain why the policy was taken out.