endownments

pcs

hi can anyone tell me if endownment policies are covered by the financial compensation scheme. I have two policies that I cant make my mind up with the way they are performing what to do whether to keep make paid up or surrender though if they are not covered by the scheme I will surrender them.

Froggitt

they are covered only if they were missold, and if you are in time to claim misselling, and other things like when it was sold, and who it was sold by have an impact on whether someone will compensate you. poor performance is not covered.

holly_hobby

You can not be compensated for loss of expectation (even if the policy isn't time barred).

Assuming the loss/requirement of life cover on surrender isn't an issue to you, on a with profits policy you will also forfeit any possible terminal bonus that may be awarded at maturity.

Holly

opinions4u

In addition to the above, some companies made a "Mortgage Promise" or similar that will be lost on surrender.

Proceed carefully. It's not always a straight forward decision.

pcs

my policy does have a mortgage promise though I recieved a letter saying there not going to pay if the policy deosnt meet 6% gains if it met those gains it wouldnt be short any way.

dunstonh

my policy does have a mortgage promise

These can make an endowment worth keeping.

though I recieved a letter saying there not going to pay if the policy deosnt meet 6% gains if it met those gains it wouldnt be short any way.

Most of them have a figure based on the 6% target but will still pay an amount above that if it does run short. Just not the full target amount. Which provider is it?