What happens to your policy?

scorgeous

Can anyone tell me what happens to an endownment policy if you stop paying it? If you stop paying the payments does that mean that you automatically lose it? A friend of mine got into trouble about 8 years ago. She had an endownment policy with her mortgage but she fell behind on the payments so she changed her mortgage to a repayment one, and therefore didn't pay anything more to her endownment. She asked me the other day as she knows I'm on this site alot if I could ask for some advice on whether she would be able to try and trace back the policy and get some money back for it, or did she lose all rights to it the minute she stopped paying? Any help would be greatly received, it would seem she has managed to spend too much money again :mad:

silvercar

Either it will have been paid out and cashed in or paid up. The latter means that no more payments are meade but the money stays invested until the original payout date unless cashed in earlier.

castle96

Ring the Coy and ask !

Quite often, the premiums will be paid automatically, out of the surrender value until this diminishes/expires. Possible the policy IS still in force/has a value, though I doubt if premiums could be continued.
Could now, be made paid up (no further premiums/reduced value), or surrendered