What A Wonderful Endowment Payout!!!

itsakidsworld

Hi Everyone,

I thought I would share this story with you all. To some it may offer comfort as you will or have been in this situation. To others it could be used to warn you of what might happen to your cash in 20 years time!

20 years ago we took out an endowment to protect a "top up" on our mortgage when we moved to a larger house. The stories about mis-selling are widely known and our story was the same- £19k cover which would be worth £20million!!! in 25 years( you get the story yes?)

The payment was £20 a month so over the last 20 years we have paid in £4800. We did not understand endowments at the time- which was probably the same amount of knowledge as the financial advisor!! The policy was a "profit builder" which was with Scottish Life.

We called Scottish Life and asked how much the policy was worth to surrender as their projections on shortfall were a disgrace to say the least.

The surrender value after an incredible 20 years is...........£4340!!!!!!!!!!.......£460 less than what we have paid in!!!!!!!!

So we cashed in and have put all the cash into RBS shares. Could be good, could be bad but I reckon it is a calculated gamble for the next 5 years and we are happier.

I would like to publicly thank Scottish Life for the excellent way they have "managed" my cash which was our guarantee to pay our mortgage and wish them all the very best in their future investments. Without their incredible knowledge and expert investing we would have a little nest egg worth maybe 3 times the surrender value if we had just stuck it in the local post office account!!!

Luckily we do not need the cash to pay the mortgage now but if we did, how amazing that these people can take your cash and sleep at night knowing their bull s**t has worked on thousands of people like you and me.

So the moral of this story folks is look after your own cash and destiny and let the "men in suits" suffer!!!!

Thanks for reading and have a great weekend.

opinions4u

If you're happier now, that's fine.

You've probably surrendered at the bottom of the market and invested in RBS shares when they are trading 200%+ above their low point though.

When did the company first send you a red letter? Have you made a mis-selling complaint (assuming you were mis-sold the plan)?

By the way, I share your cynicism with the performance of most of these investments (and I used to sell the things) and also feel 'done' by the experience.

Alikay

I'm not defending the things....we also had an endowment mortgage and cashed the policy in because it was rubbish (got just over what we paid though) and paid it straight off the capital when we switched to a repayment mortgage. And like many we couldn't claim mis-selling, because somewhere hidden on the policy documents was a tiny line in microscopic font saying that investments could go up or down.:rolleyes:

If it makes you feel any better though, at least it gave you life insurance cover for that £460, which would've been useful had one of you croaked during the term.

itsakidsworld

Opinions4u,

we were sent a red letter when the ft index was under the 4000 point mark. We were advised that once the index went over 4000 look at selling and when it recovered we asked then the surrender value and it was nothing fantastic. I understand that it is not the best time but even at 5000 points or 6000 points the policy would never have achieved anywhere near the stated value so we cashed in. I know RBS shares are alot higher than their low point but they are still a good option and at least the banking sector is a little more stable and certain- just!!!

Also we did look at mis-selling but this policy was not covered so basically just a learning curve in life and certainly no misery!

Alikay,

I like the point of insurance cover for £460 for 20 years!! Now I do feel even better!!

My story is just a note to let people see the real world out there- especially the young people justing starting on the property ladder- never been a better time but abit like a child in a sweet shop- lots to buy but no money available!!