My Dad wont claim?!

gpage2000

Hi all, i am sorry in advance for the lack of details i'm about to give...

but my Dad took out a mortgage around 15 years ago, which he's now paid off, but it was an endowment style scheme.

He mentioned that he may be around 8K short at the end of everything, but is worried about writing to the Prudential as he says that the payments he made/is making are inclusive of a life plan of some sort... and that if they give him any money, he'll lose his life plan.

Ironically i work for a bank, but am new to the notion of endowments as it was sort of before my time!

Can anybody give me any tips or advice on this? Dad was completely misold the policy as he was explaining that the figures were completely exaggerated and miles off the truth!

Thanks for reading,
from a caring son!

UK007BullDog

I suggest you read up on endowmnets and then look at exactly the type your dad has. He could have an endowment which incorporates a life plan. Depending on his age it might be cheaper for him to keep the endowment running than to take out a new life policy.

But first of all you need to read up on endowments and then check on the one he has.

maninthestreet

If he's paid off the mortgage, then why be concerned it will be 'about 8K short at the end of everything'? Most, if not all, endowment policies have life assurance built in. Making a claim for mis-selling will not mean the policy will be terminated if his claim is successful.

dunstonh

Its up to him if he complains or not.

Some good news is that All Prudential endowments maturing in 2005 met their repayment targets and delivered an average surplus of £2200.

The final figures havent been released yet but they were on track for all hitting target in 2006 as well with an increased surplus of £3300.

lewt

DO it for him.........

housemice

gpage2000 wrote:

Hi all, i am sorry in advance for the lack of details i'm about to give...

but my Dad took out a mortgage around 15 years ago, which he's now paid off, but it was an endowment style scheme.

He mentioned that he may be around 8K short at the end of everything, but is worried about writing to the Prudential as he says that the payments he made/is making are inclusive of a life plan of some sort... and that if they give him any money, he'll lose his life plan.

Ironically i work for a bank, but am new to the notion of endowments as it was sort of before my time!

Can anybody give me any tips or advice on this? Dad was completely misold the policy as he was explaining that the figures were completely exaggerated and miles off the truth!

Thanks for reading,
from a caring son!

He should only complain if he wants to. You can complain on his behalf, but Prudential will only deal with you if your father confirms, most likely in writing, that you have his authority to do so.

If he complains, and has his complaint upheld, I think it is unlikely he will be asked to surrender the policy, as it is no longer linked to a mortgage. However if redress is offered that includes a surrender value (i.e: an offer on the basis that the policy is cancelled and the current value paid along with a compensation figure) Prudential cannot force him to surrender the plan and therefore lose the life cover. You can ask for the compensation only to be paid, and the policy to remain in force. If Prudential wanted to know why he wishes to keep a plan he feels is unsuitable for him, simply telling them that the life cover portion is important (that at his age he would be unable to obtain a similar level of cover elsewhere for the premium he is now paying) is entirely valid in my opinion.