Life Does Interest accrue while awaiting a settlement?

J

James01

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Hi All,
I am in a situation where I'm awaiting settlement of a life assurance policy claim for over 2.5 years that thankfully is looking like finally being sorted soon.
My question is this do these settlements(in this case with Royal Liver) accrue interest from the date the claim is made?
And if it does. does anyone know at what rate approximately?
Thanks for any help anyone may be able to offer!
James!
 
Re: Does Interst accrue while awaiting a settlement?

James, yes it does. Generally once the payout of a claim has been delayed beyond 30 days an amount similar to the rate it would achieve on deposit is added to the claim value. Interest is back dated to the date of death up until date of payment.
 
Re: Does Interst accrue while awaiting a settlement?

Sumatra said:
James, yes it does. Generally once the payout of a claim has been delayed beyond 30 days an amount similar to the rate it would achieve on deposit is added to the claim value. Interest is back dated to the date of death up until date of payment.
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Sumatra thanks a million for the quick reply! Its much appreciated!
 
Re: Does Interst accrue while awaiting a settlement?

I saw a death claim today that paid out an interest rate of 0.25%
 
Re: Does Interst accrue while awaiting a settlement?

Just to follow up on this, some quick sums on the final settlement figure show it attained a 2.4% rate while awaiting final settlement.
And thanks to the earlier posters for their input
 
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