Full and final settlement

jenny.harrod

Hello

First time I've posted on here and would love some advice from you old timers. I apologise for the length of this post.

I have succesfully claimed on a mis-sold endowment which I took out on a 43K mortgage in 1991 (when I was single) I married and moved into my hubbies property which he also has an endowment for (RTB at 23k - his claim has been unsuccesful) I sold my property at a small loss but have kept up the Life insurance payments.

Now the Barclays Life (Woolwich) have agreed my mortgage was mis-sold but are only offering a complete payment of 13.3k as full and final settlement, which means the life insurance ends and presumably there will be no bonuses etc at the end of the term. The policy is only apparently worth 8k so in theory it sounds good. Our joint mortgage which my husband pays has another 12 years to run and is also not on target and I was hoping to use my end of term "payout" (which would have been due at the same time) to cover any shortfall and top up our pensions. We could do with the money now as the mortgage is an Open plan and has a loan facility to pay off of about 6k which I could clear.

My concern is where should I put the £5000 to be sure it will make sufficient to cover the shortfall? Also is it normal for these companies to offer this Full and final settlement message, or is it just because I have recently been diagnosed with MS and they think I might die and they wold have to pay out (In my letter I stated that I would have had critical illness cover with a repayment mortgage if it had been offered - I then wouldn't be worrying about a mortgage)

Should I accept this ultimatum or is there a better course of action? My life insurance payments are £68 per month and we are paying £300 pm off the Open Plan loan. What do you think. I've got 28 days to make my decision.

Thanks
Jenny

payless

Have they clarified the basis of their offer-

looked at comparing a repayment mortgage against an endowment - or is it return of premiums plus interest.

Have you asked whether they will offer replacment life cover at standard rates with no medical underwriting?

Crit Illness cover was not common in 1991

jenny.harrod

Yep they told me that about critical illness.

They have compared the offer with a repayment mortgage and worked out that the compensation is the difference between the 2 ( £900) they are offering me the return of premiums paid, the interest plus this £900.

They have not offered me any other life insurance or anything else. I get the impression they are saying " we don't want to know now you've got MS, this is the offer, take it or leave it!" :-/ They also don't say what will happen if I decline the offer.

Thanks for answering me

Jenny