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compensation offered-advice please?

£20,000 endowment taken out 1997
paid off in jan 2000
premiums only continued due to waiver because of ill health.
have been offered £982 compensation.
just filled in forms for review of waiver, if not accepted will probably cash in endowment as unable to afford premiums, or may just let it run its time.

any advice would be appreciated as to what step to take next.
is this a reasonable sum to accept?
standard life policy sold by hsbc!
Nice to save.

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