should I claim mis-selling?

daveydumplin

Our mortgage is in joint names, we have several policies both single and joint that are now not expected to pay our original mortgage amount. We changed to a daily interest mortgage about 5 years ago and overpay every month. Should we keep the endowment policies that will pay off some of our mortgage when they mature or should we be thinking about claiming. We have had red letters from our life assurance companies, but if we claim do we lose the amount they are now expected to pay out at maturity? Please can someone help.

dunstonh

Should we keep the endowment policies that will pay off some of our mortgage when they mature or should we be thinking about claiming.

Endowment projections use defined rates of return to estimate a potential maturity value. The actual performance of the funds within the endowment could be higher or lower than that used on the projections.

You could be getting warnings now and end up in surplus or you could get a much bigger shortfall if the investment fund is poor.

The decision to complain or not has nothing to do with whether you keep the endowments or not. Plus being in a potential shortfall position is not something you can complain about. The complaint goes back to the original advice that was given and whether you were made aware of the various options and risk. If you were, then the complaint will not be upheld. If you were not and there is no documentation to prove otherwise, it will be upheld.

but if we claim do we lose the amount they are now expected to pay out at maturity?

Currently, on Pearl remove their endowment promise. However, Pearl endowments are pretty poor (although they had some good years prior to 1999) and you wouldnt want to keep one with them now irrespective of the promise.

As for what you should do with the endowment, we would need to know more about it.