No interest paid on lapsed endowment

cecelia

My policy with the Norwich Union would have matured next year had it had not lapsed, due to circumstances 15years ago I was unable to keep payments up for a period of around 4yrs.
Once I was in a position to start making regualar payments I was told it was not possible unless paid the arrears of 6k with a lump sum which I wasn't able to do, the cash in value at the time was £16K, I had no idea how these things worked at the time and just left as I was worried it may cause complications with my building society

I have since been advised that it's now worth £3.5k, I have not been paid any interest and it seems my money has gone in admin fee's.

Can anyone help?

dunstonh

Your figures dont seem to add up and it suggests you have misunderstood.

Fr example, you only made payments for 4 years. So, basically, you paid nothing in for the first 24 months (charging period) and only invested for around 2 years. To expect the cash in value to be £16k after just 2 years is highly unlikely unless you paying around £600pm in premiums.

I have not been paid any interest and it seems my money has gone in admin fee's.

Endowments dont pay interest and the fee is usually percentage based on the value so its not possible to run out of money unless you keep the life assurance running and have it deducted from the pot or take out a policy loan.

I think its most likely that you are mistaken on that 16k figure as it would be unsusual to have seen a £600pm or so premium back in the early 90s.

cecelia

Many thanks for your prompt reply.

I had made payments for 8yrs then had 4yrs of missed payments...arrears of 6k which included either admin or penalty charges.
The 16k cash in figure was offered in writing at that time from an independent company that purchases endowments.

dunstonh

The 16k cash in figure was offered in writing at that time from an independent company that purchases endowments.

TEP companies dont usually buy paid up endowments. Did they realise it was a paid up plan?

EdInvestor

A good example of why it's a terrible idea to make endowments paid up.

dunstonh

EdInvestor wrote: »

A good example of why it's a terrible idea to make endowments paid up.

Where is a good example of that?