Versatile Endowment Policy

Trust_2

Hi

After some advice, took out a versatile endowment policy in 1990 for £30 per month, guy came to my work place, and said this was a good way of saving for my child's future, he said for a monthly premium of £30 I should get no less than £27k over 20 years, actually said it would be around £30k

20 years are up shortly and been told I would get £9k

As this is not connected with any type of mortgage never had a so called red letter,

Do I have a claim and how can I prove what someone told me, to clinch the sale, after 10 years I was told I could cash in and was told this would have been around £8k so personally thought this was on track,

Any advice?

dunstonh

Do I have a claim

no.

how can I prove what someone told me

you cant

Any advice?

In 1990, endowments were the typical product used for long term regular savings. ISAs didnt exist back then and PEPs had greater restrictions on them as the time and the minority of the tied providers that did offer them tended to set them at a minimum of £100pm. So, at £30pm you couldnt have one.

So, generically, the product you have is right product for 1990 for the objective. Therefore no grounds for complaint. Yes, its obsolete now and has been for many years but its the point of sale that matters.

Trust_2

Thanks for your reply Dunstonh,

You have to ask the questions, I would have been better withdrawing after 10 years, which I had the power of hindsight,

You mentioned £30 could not have one, I have definately got an endowment for this...

The sales guy was the father of one of the employees at the time, and came in and did his little presentation, being you and so called nieve at the time believed and signed up, think everyone did, £30 * 12 months * 20 years would give me £27-£30k

Thanks

castle96

think D means that PEPs were set at min. premium of £100pm. Endowments normally min. premium of £10

dunstonh

You mentioned £30 could not have one, I have definately got an endowment for this...

As castle says, I was referring to PEPs (the better option).

The sales guy was the father of one of the employees at the time, and came in and did his little presentation, being you and so called nieve at the time believed and signed up, think everyone did, £30 * 12 months * 20 years would give me £27-£30k

Those are the sorts of figures they would have got if you had done one 20 years earlier. In 1990, no-one saw the 2000s having two massive stockmarket crashes in quick succession (typically you only get one of that level -45% - every 20-30 years - with 25% being more typical of the 5-7 year crash. To get two of 45% in 10 years is unusual).

magpiecottage

There would be one possible ground for complaint if you have a copy of the original illustration you were given.

Most providers chose to use standard charges, prescribed by their regulator at the time in preference to their own (higher) charges. You may then be able to make a claim for misrepresentation.