Life Insurance Endowment help

choccyface2006

Hello

I wasn't sure where to post this (Insurance, savings, endowments??) so feel free to move it!

I have a very small life insurance endowment that I took out nearly 20 years ago. It wasn't alongside a mortgage but instead taken out to give my daughter some money when she was 21.

Originally it was with Refuge Assurance but it merged with United Friendly in 1996 and is now with Royal London after a take over in 2000.

When I took out the 'with profits' policy I believed I would get all the premiums back plus frequently added bonuses to total a nice lump sum. I thought the only senario where I wouldn't get the money back was if I surrended the policy early.

I have never had any indication that this wasn't the case but with most endowments not paying out the amounts they were expected to I decided to write to Royal London to see how much I could expect.

I only did this earlier this month but got the dates confused and thought the policy was due to run for nearly two more years when it actually matures in November.

The current figure they quoted is less than I've paid in by about 15% even with the bonuses over the policy period. There are still 2011 bonuses and a possible final bonus to go on but I don't expect these to be much.

When I asked if there was anything I could do the lady that called me said I'd left it a bit too late to do anything about it now.

I have had the benefit of a very small amount of life insurance which has been taken into account along with admin charges but still I expected this to be a much higher figure.

Is there any point in trying to argue that this polcy may have been mis-sold?

Many thanks

Sarah X

dunstonh

When I took out the 'with profits' policy I believed I would get all the premiums back plus frequently added bonuses to total a nice lump sum. I thought the only senario where I wouldn't get the money back was if I surrended the policy early.

That has never been the case other than full cost endowments but they are going back a few generations.

Is there any point in trying to argue that this polcy may have been mis-sold?

Investment returns are not something you can complain about under FSA guidelines. It would be like complaining they didnt have a crystal ball. Nothing else you have written has indicated any mis-sale.

These policies are obsolete. However, you bought one before they went obsolete and they were for generations the main product sold by the insurance agents. Refuge could only retail Refuge products. So, obviously quality was not a concern for you when you took it out (don't mean it like it may sound but just a case of fact). You were never going to get the best option from them and they could not retail you the best option. So, complaining you havent got the best option wont work either.

With the dot.com crash and global recession happening in quick succession, this is what can happen. We had two massive drops in a decade. You would have to go back a generation to find another of similar scale. They are not common but the double whammy in that period couldnt be predicted.

choccyface2006

Thank you for your comments, it was worth asking!

Sarah