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Endowment policies

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Kathyan | 12:24 Mon 22nd Aug 2005 | Business & Finance
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My husband was sold an endowment  policy in 1991. We used it to buy our house in 2000. Now it seems that there will be a shortfall of around �15.000. Has anyone claimed for compensation and if so how much was it? Also when you claim is the policy then cancelled? Thanks in advance.
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When will the policy mature? If it is more than 10 years, there is a good chance that the shortfall will come down in line with an improvement in the stock market. Also, there is no guarantee that you will get any compensation. It all depends on the advice given at the time and your additude to risk. If you make a claim, your policy will not be cancelled.

Have you considered trading your endowment? Have a look at this website http://www.aap.co.uk/  

I hope I've answered your queries, please post back if you need anymore information.

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Hi LostSheep, the policy matures Sept 2015. My husband was in the Army at the time he took out the policy and just wanted life cover. He was told that this was the only policy available at the time because of his going to the first Gulf war. So if he did claim and get compensation, the policy would just run and mature as normal then?

If he does complain about the policy and get compensation the policy will just run to maturity.

Did you take this policy out through an independent financial adviser? If so, you would have to make a complaint direct to them because you are complaining about the advice given at the time.

Hope that helps!!

I bought an endowment in '91 too covering �60,000. I claimed compensation for misselling this year. I had moved in the meantime and so it took a while before I got a warning letter hence the delay. The finance company had gone out of business but Bradford and Bingley took over the liability and sent a standard form.

I stated that during the selling pitch the salesman had told us that the lowest figure I'd achieve was the lowest estimate on the illustration (I still had the paperwork) and had I been told that there was a significant risk that the legal minimum in the small print was a realistic possibility I would not have gone with the endowment.

My claim was upheld and I was awarded just over �7,000 compensation. I'm now intending to sell off the endowment policy and convert the remainder of the mortgage to a repayment.

Pretty easy process, I'm glad I didn't go to one of these agencies who'd have taken a cut.

Hope this helps  

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