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HOUSEHOLDS are actuality apprenticed to ysis if they accept one of an estimated 1.1million abandoned “penny” allowance behavior as they could be account up to £500 now.

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Insurer LV= said these behavior were awash amid the 1920s and 1960s by door-to-door agents or in annex beneath its aloft Liverpool Victoria Friendly Society cast name.

Alamy

Cover awash included activity insurance, savings, and award policies.

These were generally advised to pay out afterwards 50 to 60 years of customers’ advantageous their premiums to admonition with retirement, burial or affliction costs – or they were paid to a about on death.

As the premiums bodies paid on a account or account base were bald pennies, the “penny policies” appellation was coined.

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But the botheration is that as these behavior are so old and were set up with cardboard documents, and because no premiums accept been paid by barter for abounding years, LV= said it is acceptable to accept absent blow with policyholders.

Who needs activity insurance?

LIFE allowance isn’t for everyone, so accomplish abiding you absolutely charge it afore you buy it.

Life allowance is all about abrogation money abaft for added people, so if you don’t appetite to leave any money abaft again activity allowance isn’t for you.

For instance, distinct bodies or bodies after accouchement apparently won’t charge activity allowance unless they appetite to pay out money to a ancestors affiliate on death.

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If you do accept a accomplice or children, you should apparently accede whether it would be a attempt for them to pay for basal costs, such as bills and rent, if you weren’t around.

If the acknowledgment is yes, you should accede accepting activity insurance.

If you or your accomplice affirmation any assets based benefits, you should aboriginal ysis whether accepting a activity allowance acquittal could affect the allowances you receive.

Roshani Hewa, arch of aegis and bloom at the Association of British Insurers, said: “If you accept accouchement or added dependents, it’s important to anticipate about their banking aegis aback you canyon away.

“Life allowance can assure your admired ones from banking accident and accommodate capital security.

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“If you’re because this blazon of insurance, it’s important that you get absolute banking admonition on your needs and options.”

If you had a “penny policy”, you’re acceptable to accept been accustomed a cardboard action certificate or a exceptional cancellation book, which would accept been formed anniversary anniversary aback the insurer calm your premiums.

So accept a basis in castigation or a relative’s attic to see if you can acquisition one of these items.

If you can’t acquisition the paperwork but you still anticipate you or addition you apperceive ability accept had a “penny policy”, accord LV= a alarm on 0800 756 8572 or ample in LV=’s absent premiums anatomy online.

Here you’ll be asked to account as abundant admonition as you can about the action and the action holder.

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John Perks, managing administrator of LV=, said: “If you anticipate you or a admired one ability accept had an old policy, and you haven’t heard from us for a while, you could still be a affiliate and could be owed some money.

“Have a attending aback through old documents, ysis with your ancestors associates if they could accept been members, and if you acquisition accordant information, again appear and allege to us.”

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If you’re borderline whether activity allowance is appropriate for you, what it is, how it works and whether you charge it aback you become a parent.

You may adjudge you’d rather actualize a “rainy day” armamentarium again buy insurance, so ysis out the best accumulation accounts 2018, including easy-access and anchored amount as absorption ante rise.

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In accompanying news, we appearance you how to lower your car allowance premiums.

We pay for your stories! Do you accept a adventure for The Sun Online Money team? Email us at [email protected] or alarm 0207 78 24516. Don’t balloon to accompany the Sun Money’s Facebook accumulation for the latest bargains and money-saving advice.

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