Endowment policy cancellation/surrender?

girl_friday_4

I've used the MSE links to complain about my endowment policy with Friends Provident.

They have offered me compensation of £3,400.00.

However, to clain the compensation, they have stated that I have to cancell/surrender the endowment policy.

Everything I've seen regarding endowments says never to cancell/surrender a policy.! I am 10 years into a 25 year policy.

Whats the right thing to do?

If I don't cancel the policy I don't get any compensation.

changlyn8

Dear girl_friday

Your situation sounds very simular to my own however, my bank was a least willing to change my mortgage into a repayment mortgage.

If your bank expects you to surrender your policy have they indicated how they expect you to repay the loan?

Changlyn8

dunstonh

everything I've seen regarding endowments says never to cancell/surrender a policy.!

That is incorrect and a myth sent out over the years by tied agents/insurance companies to keep you paying the premiums.

If the policy is no good then there is no reason to continue to pay into it. If it is good or contains options which can be utilised to make it better, then it could be worth continuing.

FP do normally insist on surrender and I don't blame them. You are complaining saying you shouldnt have had this policy. So why should you be want to keep it when they are paying you redress?

floogy_2

After discovering my endowment would have a shortfall of several thousand pounds, I recently took financial advice and subsequently cashed in my endowment policy and remortgaged my property so I'm not entirely sure whether I can still claim compensation for the way I was sold the endowment.

Any advice would be greatly appreciated if anyone has had the same problem.:huh: