Endowment - missold although no longer linked to house?

rabialiones

i need advice, please help!
i took out an endowment, but this is no longer linked to a mortgage.
kept it as savings policy, mainly because payments are being made by waiver, due to ill health. otherwise i couldnt have afforded to keep on payment .
would it be worth my while putting in any sort of application.
when i receive my yearly statement, it does show that performance is not as expected, and i would not receive the sum originally expected .

BACKFRMTHEEDGE

dunstonh wrote:

Which is often correct but the paid up option is usually ignored here.

Now I'm intrigued what does "the paid up otion" mean....Does that mean seeing things through to the end?

bluenose1

rabialiones wrote:

i need advice, please help!
i took out an endowment, but this is no longer linked to a mortgage.
kept it as savings policy, mainly because payments are being made by waiver, due to ill health. otherwise i couldnt have afforded to keep on payment .
would it be worth my while putting in any sort of application.
when i receive my yearly statement, it does show that performance is not as expected, and i would not receive the sum originally expected .

Yes,
you are claiming for the period you had it as an endowment. I used the standard template in the Which guide on line which advises on the misselling.
I also use my policy as a savings policy
Good luck
Anne

rabialiones

does the endowment period end when u have paid off your mortgage?
if thats the case it was only for about 2 and half years.
is it worth putting any claim in?

dunstonh

BACKFRMTHEEDGE wrote:

Now I'm intrigued what does "the paid up otion" mean....Does that mean seeing things through to the end?

5 options exist.

1 - continue as held.
2 - continue but switch to alternative investment funds (not always an option but can be a very good one if exists)
3 - make paid up. (stop premiums into it but do not take the surrender value. It remains invested and subject to investment returns and when it matures on the original date there will be no penalty. Or you can wait until such time that the surrender penalty is lower or doesnt exist).
4 - Surrender
5 - Sell the policy (if possible).

Say you have a current value of £20k and the surrender value is 15k. That means you are losing £5000 by surrendering it. If you make the plan paid up and say get 2% a year from now one, you also have to rememember that you are not losing that £5000. If you have 5 years left until maturity, that equates to 5% a year saved by not paying a penalty and 2% on top of that in bonuses. Thats 7% a year with no tax to pay. Can you get that in a bank account?

Making a plan paid up also doesnt have to mean until maturity. It could be that the provider charges no surrender penalty after 15 years. So, if you are in year 13 and there is a surrender penalty of £5000. By making it paid up for 2 years and then surrendering it, you gain a further £5000.

bluenose1

rabialiones wrote:

does the endowment period end when u have paid off your mortgage?
if thats the case it was only for about 2 and half years.
is it worth putting any claim in?

Yes I think so.
Based on what I got offered you should be entitled to a couple hundred quid.
For what should take no more than an hour to do I would certainly claim.
Regards
Anne

chris_jones_3

Hiya,

I had great news today in the post. After reading Martin's article on endowements being miss sold. I followed it all through and to my amazement I received a lovely cheque in the post for just over £1,400. So I am over the moon. It only takes about hour to fill in the forms as well so go for it - nothing ventured nothing gained. Good Luck And a HUGE thank you to Martin for letting us all know about this. :j

AstonDB6 wrote:

Hi All

We have an endowment policy that was linked to our first house. About seven years ago we moved and remortgaged to a repayment policy. Can we claim due to mis-selling even though the policy is no longer 'part' of a mortgage?

Thanks

Alan

rabialiones

bluenose1 wrote:

Yes I think so.
Based on what I got offered you should be entitled to a couple hundred quid.
For what should take no more than an hour to do I would certainly claim.
Regards
Anne

thanks, please give advice on how i go about putting in a claim.
i am not a member of which magazine.

bluenose1

rabialiones wrote:

thanks, please give advice on how i go about putting in a claim.
i am not a member of which magazine.

Used the letter as suggested by Martin on Which website for when an endowment has been sold without giving the correct advise.
http://www.which.net/endowmentaction/complaint/write_a_complaint_letter.html

Good luck
Anne

birmanza

Not sure if this helps your case but thought I would tell you what happened to my husband. Endowment was bought with ex wife when buying first house. Marriage ended and in divorce proceedings it was found that endowment was not attached to house. Wife got house, hubby got endowment (this was just before house prices soured and endowments plummeted!!!) hubby cashed in endowment 2 years later as projections were getting worse with every letter , he had been told verbally when sold house that endowment would definately pay for house and should earn considerable amount in excess too. A year after hubby cashed in, he complained to company. the company investigated and came back and said no, nothing had been done wrong etc etc. Hubby took it to ombudsman and they investigated and ordered £6500 compensation !!! So my advice is give it a shot anyway and then take it further!!!
Good luck