Endowment payout shortfalls

blobb140

Can anything be done about the disgusting settlements being paid at the moment on maturing endowment? In my case it paying out substantially less than paid in!

turbobob

Yes, have a read through the FSA's guide for some ideas on dealing with an endowment shortfall. If the policy has already matured and you actually now have a mortgage shortfall then you will either need to find funds from elsewhere or speak to your lender about converting to repayment and extending the term.

If you feel you have a valid complaint about the sale of the policy (and you haven't complained already) then here is a guide that might help. Bear in mind a lot of complaints are now time barred.

Unfortunately maturing policies are often now falling way short of projection figures in the last couple of years, particularly if they were sent out before last October when it all went really pear shaped. How badly a policy will be affected will depend on where its invested, but commercial property, shares and many fixed interest securities have been hit hard.

dunstonh

blobb140 wrote: »

Can anything be done about the disgusting settlements being paid at the moment on maturing endowment? In my case it paying out substantially less than paid in!

You may not realise this but we are in recession and have just had two major stockmarket crashes in 8 years. We have just come off the back of one of the worst medium term periods ever for investing.

Its part of the risk you take when you invest. This is why the investment risk warnings state you can get back less than you pay in.