L&G endowment - amount paid today

JustLikeThat

In case it is of interest to anyone out there, my 25 year L&G 'with profits' endowment policy has just matured at £26,509. The mortgage target was £34,500 and I have been paying £63.80 per month.
The shortfall of about £8000 works out at 23.2% less than target and of course far less than what was optimistically forecast when the policy was taken out. My formal attempts to regain anything when I first received red letters was unsuccessful because the policy was taken out just before we would have been eligible.
To make matters worse, L&G have sent the money to the recently closed/paid up mortgage account. HSBC, on the phone, led me to believe that they would pick up the payment and transfer it to our current account with them. This is not happening and the payment will bounce back and forth for a few more days. Let this be a lesson to anyone who is expecting a payment and has paid off the mortgage - update where the money is going to. How foolish am I!

yrwyddfa

I have the same problem with Std Life
Try as I might I cannot get them to explain why even though I paid in £500 per year the value of the plan only increased by ~ £200 per year for the last years
Financial mismanagement or what?

kingstreet

Your premium pays for charges and protection costs.

Not all the premium is being invested. If you ask them, they may be able to tell you the "investment" element of the premium.

Thrugelmir

JustLikeThat wrote: »

To make matters worse, L&G have sent the money to the recently closed/paid up mortgage account.

The policy was assigned to this lender at some point in the past to secure a mortgage debt. Until such time as this notice of assignment is lifted by the lender. L&G are unable to pay the funds to you.

This should have been dealt with in the past when you moved properties.

JustLikeThat

Actually we took the endowment out for the property we still live in. Been here 25 years this month! As I said originally, I should have made sure. The frustration is just that HSBC arranged to close our mortgage account with them (by transferring the long-outstanding token £14 from our current account) and knew that the L&G amount was coming 2 weeks later.

kingstreet

When HSBC closed the mortgage account, it should have provided you with a notice reassigning the policy to you for you to arrange to have the proceeds paid to you by L&G.

kent_money_saver

I hope my L and G policy does as well as yours.
I took out a similar policy around the same time as you.It is supposed to make £51k, it looks like it will make just shy of £34k, thats around a 33% shortfall.
Ive four months to find out the final score.
Ive got a commission statement coming so i can see where some of the cash has gone.should be interesting reading...