Was the endowment payment £30000 short?

Doooford

Just wondered if anyone could give a yes no to this?

My mother (as a married couple) got a mortgage in 1995 for £80000 with an endowment that had monthly costs to the same value as the mortgage monthly payment.

In 2006 my father died (as the main wage earner) with an 'open verdict' on the death certificate. The endowment paid out around £5000 which has left £30000 to pay on the mortgage today.

Now I'm not that up to speed on endowments, but it does seem that if they had just paid the endowment payments into the mortgage that it wuld have been paid off in 10 years anyway.

My only question is, does this sound right?

Many thanks

kingstreet

So, was there an £80k endowment?

If so, why was the death benefit so much less?

What happened in the 11 intervening years to reduce the mortgage from £80k to £35k? Overpayments? Change to repayment?

dunstonh

My only question is, does this sound right?

No.

On death, the endowment should either pay out the fund value or the sum assured, whichever is the higher. So, if the sum assured on the endowment was £80,000, then £80,000 should have been paid out .

You may want to check the information again as what you have typed doesnt match what would actually happen.

Doooford

I will check and report back...