Mortgage Endowment Hidden charges

zippbmth

Hi guys,

I am so sorry if this has been answered before - been looking for hours!

I'm trying to get to the bottom of where my money has gone! I took out an endowment on my mortgage in 1989, and have paid £16,000 into it since. I've asked them exactly what I will expect to get if I surrender now - and they've come back with £13470!!

So I asked what the expenses of my 'with profits' endowment were - and they told me £2 per month.... Now, I know the policy made money each year up until 2005ish - so it seems that hidden charges have swallowed up a huge amount of money over the years.

I went back to Phoenix, asking for detailed explanations as to where my money has gone and what it has paid for. This was there reply:

"Any other costs & charges cannot be attributed separately to individual endowment policies, because premiums are paid into the pooled life fund from which benefits, taxation and expenses are paid.
As previously stated, we are not prepared to disclose the expenses in the life fund as they are meaningless in the context of an individual policy"

Are they within their right to do this? Do I not have a right to know what costs have been incurred throughout my policy? Is there a way I can claim for anything? I'm sure I'm too late but should I try still?

Thanks so much in advance for any help (or abuse if I'm crazy !):snow_laug

opinions4u

The investments haven't performed.

What good will knowing the ins and outs of the management of the fund, the life company or the workings of the steam engine do you?

Don't forget some of your premiums have paid for life assurance. Additionally, surrendering early rarely gives a better return than running a policy to maturity.

dunstonh

Are they within their right to do this?

Yes. You are not entitled to know that and its commercially sensitive information.

Do I not have a right to know what costs have been incurred throughout my policy?

You are entitled to know your explicit charges. These are usually disclosed on the illustration given to you or within the policy document. The insurer will give a policy details summary upon request which outlines the explicit charges.

Is there a way I can claim for anything?

For what reason?

I'm sure I'm too late but should I try still?

Too late for what? Try what?