Endownment policy with stanrd life and abbey mortage

iby121

Hi Guys am new to this wonderful forum I have a question about my father mortgage, he has a endownment policy with stanrd life that will expire the same time as the mortgage expires what is the situation regarding this will they pay a lump sum to the mortage for the loan after this.

please can somebody explain what happens as the statements show it matures in jan 2013

thank you for reading this and thanks for your help.

hansi

I think that what will happen is that one month before your father's endowment policy matures, SL will write and tell him what the final payout will be, and ask how you would like it paid, ie, cheque to him or direct into his bank account. He will then write a cheque to the mortgage company consisting of the difference of the maturity and the amount owing to the mortgage company. I stand to be corrected on this.

dzug1

The endowment policy will pay out a lump sum when it matures.

If it is formally linked to the mortgage, it will pay direct to the mortgage company and your father will get any surplus/still owe any shortfall

If its not formally linked to the mortgage it will pay direct to your father who can do what he likes with the money.

iby121

Thank you both for your quick reply, this forum rocks.:T

Let_Us_See

It might be wise to contact SL and request confirmation of the current value of the fund to check if there is an expected shortfall.