Mis sold endowment?

MoonManMike

Hi
In 1995, I wanted to do a small savings plan for my son so he'd have enough money to buy a car around his 18th birthday. Well, the plan does have enough to buy him a car, but as a new driver the insurance is a different matter, being many times what it was in 1995! Anyway, that's a little beside the point.

At the time I took the policy out, the advisor (not sure if I'm allowed to mention the well known company?) said the best way to do it would be to take out a life insurance (endowment) policy in my wife's name.

So, the life assured is my wife, but my son is named on the original policy, ie under 'The Child', with his name and I am listed as the proposer

When I looked at the expected value of the policy (which matures in a couple of months), it is barely more than I've paid into it over the last 17 years. A quick calculation shows that, with inflation, I am in real terms substantially down on the deal. I would have been better off putting the money (month by month) in a savings account and getting a little interest on it. Granted, I wouldn't have had the life insurance part, but I wasn't bothered about that in the first place. I just went with the advice I was given.

Although I would have been aware when I took the policy out, after all these years, it hadn't really occured to me (until I just looked) that the savings plan was an endowment

Do I just accept that is the way it is or is there anything I should be considering?

Thanks in advance for any help or advice offered

Mike

Thrugelmir

No investment can guarantee to beat inflation. Investing should be viewed as a way of protecting your money against inflation.

How much have you paid in premiums and what's the potential return?

dunstonh

At the time I took the policy out, the advisor (not sure if I'm allowed to mention the well known company?) said the best way to do it would be to take out a life insurance (endowment) policy in my wife's name.

Sounds about right for 1995 and if you used an insurance agent and not an IFA.

When I looked at the expected value of the policy (which matures in a couple of months), it is barely more than I've paid into it over the last 17 years.

Again sounds about right given the economic events of the last decade.

I would have been better off putting the money (month by month) in a savings account and getting a little interest on it.

Sometimes that can happen. Not very often. It is rare but it is possible.

Do I just accept that is the way it is or is there anything I should be considering?

The FSA does not allow complaints about investment returns as they are always unknown. The product was right for 1995 via a tied agent of an insurer. An IFA could have got better but most tied agents could not.

McKneff

You say its for little more than youve paid in but you have to consider you (or someone) has had life insurance for all those years, and you should thank your lucky stars that yu have not had to claim on it.