Act now on mis-sold endowments: new article

fusion_2

dunstonh wrote:

25 year endowment? 22k over 16 years of the 25 is about what you would expect. Endowments grow on a curve, not a straight line.

I'm not sure what you are getting at. You can find the cover letter but not the document that went with it. It's probable that you gave it to the lender as in 1990 most lenders would want the policy docs.

Back in those days, the policy documents were almost seen as proof of ownership. Nowadays, policy documents have very little meaning and most companies dont ask for them back.

Thanks dunstohn

It is an 25yr Endowment Assurance with Profits. Basic Sum Assured is £15147. Existing bonuses (up to Dec 2005) are £7460 going up roughly £200 per yr despite payments of £72.30 per month. Current final bonus rate 71% subject to change.

Am I correct in assuming on maturity I get the basis sum assured plus bonuses plus (current final bonus rate x existing bonuses). If so I will get roughly:

£15147 + approx £9500 + (70% x £9500). Totalling approx £31200.

Regarding your other point I have both the cover letter and the policy. It was just the wording that intrigued me "this policy will pay for your house on maturity". Sounded rather like a guarantee.

Mat

dunstonh

Regarding your other point I have both the cover letter and the policy. It was just the wording that intrigued me "this policy will pay for your house on maturity". Sounded rather like a guarantee.

Ahh, i see what you mean now. No. It wouldnt be looked at like that.

It is an 25yr Endowment Assurance with Profits. Basic Sum Assured is £15147. Existing bonuses (up to Dec 2005) are £7460 going up roughly £200 per yr despite payments of £72.30 per month. Current final bonus rate 71% subject to change.

Am I correct in assuming on maturity I get the basis sum assured plus bonuses plus (current final bonus rate x existing bonuses). If so I will get roughly:

£15147 + approx £9500 + (70% x £9500). Totalling approx £31200

Your calculations seem fine. L&G are one of the stronger companies and whilst I dont expect you to see a big profit, like perhaps you expected, you should come close. Expect the bulk of the return to be in the terminal bonus rather than the annual bonus which will remain low. And hope we dont get a stockmarket crash in the year before your maturity.

If the final bonus is still that high, it may be worth looking at surrender as an option to turn that final bonus into real money. However, that would depend on the level of the surrender value.

vickig_3

Hi, pl could anyone advise - We took out our endowment in 1984. We have tried to seek pursue the shortfall issues, but keep being told that as we took it out before 1988, we are not covered. Does anyone know if this is correct.

thanks, Vicki

dunstonh

vickig wrote:

Hi, pl could anyone advise - We took out our endowment in 1984. We have tried to seek pursue the shortfall issues, but keep being told that as we took it out before 1988, we are not covered. Does anyone know if this is correct.

thanks, Vicki

It is correct. Regulation didnt come in until 1988 (some later).

mark.from.oac

Jockanory wrote:

Hi everyone,some advice please,I have rec'd a final decision letter from Zurich(previously Eagle Star) offering me £699 as compensation for an endowment shortfall,this figure is the difference between an endowment and a repayment mortgage upto the present date,despite my protests,that i have been over paying my mortgage each month to try and cover any shortfall(and will still be paying over for the next 6 yrs until it finishes) they won't budge on this final offer.
Should i accept or has anyone else been in similar circumstances and got any advice for me.

Hi there ... it is possible to check if the redress compensation you are offered is correct ... you can go to https://www.exasoft.biz/MFWebUser/ ... this uses the sames software used by most of the large insurance companies and also by FOS ... it was recommended by Which? in their May magazine ... I used it and the claim vlaue was increased from £1,153 to £3,731 ... let me know how you get on

defender_of_the_weak

Vickig

Who sold you the policy. If it was bought through a bank, building society or direct from the insurance company then you may be able to claim. If it was an IFA (and not someone pretending to be independent) then you have nowhere to go with this

vickig_3

Thanks for that. We bought it from an IFA, attached to the building society, but they are no longer in existence. Looks like we've had it then.

defender_of_the_weak

Does the IFA company have a name or was it an IFA working within a building society sub agency.

FifeSaver

Hi

Just to let you know I sent Which style letter off to Standard Life today regarding shortfall on with profits endowment we took out in Jan 94 via the Halifax. Now falling way short of £67k target for 2019 we hope to be properly compensated. Anyone else any experience of dealing with a similar policy situation with SL? Were the OK to deal with? I have no idea what payment I might get with over 12 years to run on the 25 year policy but it is way short of target. Obviously with a repayment we would have been ok and made a substantial dent in the capital already. Ah hindsight

vickig_3

Defender of the Week,

Yes, it was Broadbent Fish and Co, housed within the Halifax premises. When I wrote to the address, I was told by the new occupants that they are no longer trading.