Endowment extending into Retirement

RichardS

My partner and I were sold an endowment policy 8 years ago - it was supposed to give us £110,000 in 25 years time (to cover the mortgage). I have had the red letter stating that the policy is under performing etc. My partner is 11 years older than me and she will expect to retire at 60 (in 10 years time). The endowment will therefore extend about 7 years into her retirement (but not mine). I earn about 2/3 of our joint salary. When we took the policy out I really do not remember anyone advising us that this was a bad idea (i.e extening into my partner's retirement). I realise that the alarm bells should really have started ringing at the time but they didn't. I have read a few articles/posts etc about this issue but have not come across the situation when the policy only extends into ONE of the couple's expected retirement like in our case. Does anyone think we have any cause for complant at all with the seller of the policy? Thanks.

payless

could you have afforded a shorter term ( whether on endowment or repayment basis)

RichardS

Payless, I'm really not sure. Probably. I certainly can't remember being directly asked that question at the time which is why I'm wondering if I am able to claim anything now.

dunstonh

It may have not been discussed in detail as you are the main earner and it doesnt go past your retirement date. In addition, there may have been an assumption that your partner would retire at 65 (although thats still leaves a couple of years over).

It really depends on what was documented on the suitability report (or reason why letter in those days). Anything going past retirement should have a paragraph confirming affordability beyond retirement.

You do possibly have grounds to make complaint if that isnt documented. However, I would be surprised if advisor/insurer didnt raise the affordability of the higher premiums with a 7 year shorter term which would probably have added around 1/3rd more to the premiums. In addition I am sure they would question the retirement date selected as 60 rather than 65 and that you wouldnt be retired.