Unpaid endowment policies been made "paid up"

Forgetmenot68

I was wondering whether anyone could advise me what this means, and what we can do about it?

During the financial meltdown that happened to us last summer we stopped paying premiums on our two endowment policies. We thought about selling them as they were underperforming anyway but this turned out not to be possible with one, and the other did not seem worth it. Therefore we planned to start repaying the premiums when we could afford it, but we haven't... then I missed a letter saying we had to pay £167 or they would be made paid up (because we received so many letters from them..no excuse I know) and this has now happened.

I have tried on the phone to establish exactly what this means and if they can be reinstated but all I've received is a letter giving a "guaranteed death benefit" sum and the fact that these policies cannot be reinistated. This looks to me like the life insurance element, and neither of us are planning to die before the end of the term, but what does this mean for our mortgage?

Sorry if this is a stupid question, but being stupid about money is what got us into this mess in the first place.

Thank you very much for any advice.

FMN

rsykes2000

A little info here :
http://www.guardian.co.uk/money/2009/oct/21/endowment-policy-life-cover

Forgetmenot68

Thank you rsykes... but that means it's a fraction of what we need to cover our mortgage! :eek:

Help. I guess I need to take all the bits of paper to an IFA and see what can be done at this point to make sure we aren't stuck at the end of the term.

I appreciate that though, thanks.

FMN