£24000 down to £4000 Endowment maturity value?

433Barbara

This is my 1st time so please go easy with me.

Basically I have been paying £30 a month for 20 years to Zurich for an endowment policy. I have never defaulted on any payments or been late.

The policy started in June 1986 and has just reached maturity. We had a letter from Zurich in March to say maturity value was £24000. Bradford & Bingley our mortgage provider sent out a financial advisor to guide us as to what to do with the money as we only have £5000 outstanding on the morgage (Therefore we WOULD have had £19000 surplus).

We did as I think most would and pushed the boat out a bit but I have today received a letter from Zurich to say that the maturity value and cheque that would go to Bradford & Bingley would be £4000?

My questions are:
1. If I have documentation from Zurich saying £24000 do they have to honnor it?

2. Surely if I took out the policy when it was relitively safe, then I be receiving more? & if so is there any websites or guides on approximately how much to expect?

3. The total of contributions I have made has been £7200, should I be expecting more?

4. Should Bradford & Bingley take any ownership in the problem as they organised for the financial advisor to come around so they to were not aware of any loss or ignorant to loss of £19000

ANY HELP WHATSOEVER WOULD BE APPRECIATED. MANY THANKS

dunstonh

1. If I have documentation from Zurich saying £24000 do they have to honnor it?

No. If its a clerical error, it would be treated as such.

2. Surely if I took out the policy when it was relitively safe, then I be receiving more? & if so is there any websites or guides on approximately how much to expect?

Not necessarily. It depends on the ratio of life to savings that the policy had.

3. The total of contributions I have made has been £7200, should I be expecting more?

Depends on the type of policy.

4. Should Bradford & Bingley take any ownership in the problem as they organised for the financial advisor to come around so they to were not aware of any loss or ignorant to loss of £19000

B&B operate tied advisers now I believe. In which case they have nothing to do with it. They are basically just salesmen and only responsible for their own stuff. Even an IFA would have limited liability depending on their actions. Commenting on a letter sent to you is not something giving any adviser, of any type, a liability for this.

I suggest you read the documentation issued saying £24k and see what it really says. Chances are the clue is in there.

EdInvestor

Most 20 year endowments maturing now are either just managing to pay off the mortgage or falling a bit short.

So the 24k was well wide of the mark for a 5k mortgage.

Sounds like there was a '2' in the wrong place.