selling endowment

virgin_moneysaver

After writing to Standard Life about shortfall in endowment they advised me to contact the IFA (who sold us a Cheletenham & Glos. mortgage backed by a Standard life endowment - all Lloyds Bank group at the time I believe). This IFA no longer in business. Also, SL advised that th FSCS won't investigate cases bought prior to 28 August 1988-we bought in June 1987.

Any suggestions or is our only hope in selling endowment on

robnye

i am afraid that you are stuck.

we are in the same position, first endowment policy sold to us by a company in 1987, the company has since gone bust.

the new regulations came into force in 1988 (or rather later and where back dated), but any thing financial sold before hand wasnt covered.

you now have 4 options

1) continue as is, and hope policy value increases (should do , depending on length o term left)

2) change it paid up policy, ie stop making monthly payment,s current value is amended pro rata. i have also heard that the life cover stops.... maybe someone else can clarify this

3) stop making payments and sell policy, depends on value of policy and length of term remaining, there are several sites around, where you enter the details and they then say whether they can beat the current surrender value or not

4) surrender policy - taking a huge hit on its current value

virgin_moneysaver

have you looked into selling and cutting losses against keep paying the premium for the next 8 yrs

virgin_moneysaver

sorry - new to this game & just read your complete answer which already answered my second question Doh!!

dunstonh

Standard life are going to float in 2006(ish). There will be a windfall payment for with profit policyholders. Although the amount is yet to be decided and the method of the distribution of the windfall (ie, increase plan value, issue shares or cheque issued), the amount is expected to average £1700.

I suggest you maintain it.

Also remember that plans will have ups and downs during the life of the policy. We have just come off the worst down period in recent history. Although no-one has a crystal ball to see what is going to happen, if things were to improve over the longer term, you should see the addition of final bonuses again and an increase in annual bonuses.

Standard life were hit badly by bad management of their with profits fund. However, they managed to get through it whilst other insurance companies had to close for new business or take other major actions to prevent insolvency.

virgin_moneysaver

thanx DD - that info will have a bearing on what we decide to do