endowment missold BUT I have claimed on waiver of premium due to sickness

Essex_Maid

am currently unable to work due to CFS/ME (past 7 years). I am considering making a claim regarding one of my mortgage endowments.

However this policy has "unable to work benefit", therefore, I have claimed successfully, and have not had to pay the premium since being unfit for work.

BUT, it was missold to me. Following my divorce I needed to move house, and went into a branch intending to take the extra money required by way of a repayment mortgage (I already had 2 endowments), and received a hard sell and advised I wuld be better off with another endowment. So took the advice.

I contacted the Abbey recently and have been sent a form for completion (got to send it back within 7 days now).

Two days later I received a "Continuation of Waiver of premium Form". These are sent out periodically, so it might just be a coincidence that I have received this form now.

QUESTION/WORRY: If I send back the claim form stating the policy was missold - could they hit back at me and stop the waiver of premium that I am currently claiming? If I had to pay the £98 a month premium its not worth my while claiming regarding the shortfall of approx £4.500. Due to my illness, I have felt unable to look into this previously, and have had at least two (might be 3) red warning letters, and have read in the press that that I could be time barred. I am not well enough to get into a protracted fight with the company that has now taken over the policies from Abbey.

Not sure what to do for best.

dunstonh

If you have claimed on the waiver of premium benefit then you are financially better off than you would have been had you been on a repayment mortgage.

Waiver of premium takes over the endowment premium until you are able to return to work or the policy matures.

Your complaint is that you feel you should have been on repayment mortgage. However, if that was the case, you would have to be paying the capital element of the repayment mortgage for the last 7 years (and until redemption). So you cannot be financially worse off with an endowment mortgage.

Your case is one of those where the endowment mortgage option has been the best option and you have gained significantly from having an endowment.

You should withdraw the complaint.

Essex_Maid

If I had taken out a repayment mortgage, I would have covered it with a PHI insurance.

Trouble is my other 2 endowments were taken out prior to 1988 so have been told I cannot make a claim against fsa, and the advisor who sold them is no longer trading. Do you know of any way round this?

Everything is such a struggle with this illness, and I really have to pick my fights!
Thanks for replying

dunstonh

If I had taken out a repayment mortgage, I would have covered it with a PHI insurance.

So, why didnt you cover the interest only element with a PHI?

That is the response you would get back. Hindsight is a wonderful thing and saying you would have done this if you had done that isnt going to work. Not unless you took out a PHI for the interest only element.

Trouble is my other 2 endowments were taken out prior to 1988 so have been told I cannot make a claim against fsa, and the advisor who sold them is no longer trading. Do you know of any way round this?

No. If sold before 29th April 1988, you cannot complain as it wasnt regulated then (bank and tied agents exceptions).

Mr_helpful

I think dunstonh is spot on. to prove that you were missold an endowment you would have to demonstrate why it was bad for you and how you have been dis advantaged. The fact that an endowment has a shortfall does not mean it was missold.
Now in your case you clearly have gained from the policy.