Help regarding endowement policy

notgotaclueme

Hi im new on here and need help with something:-

in 1997 i was sold an endowement policy to use as a type of pension as i didnt have a mortgage at the time.

I still do not have a mortgage and everytime i mention i have a endowement policy (to banks and such) i always get the same confused repsonse "why do you have an endowement policy when you dont have a mortgage".

I dont actually know the answer to this as at the time of being sold it it was sold more like a pension rather than something to do with a mortgage.

The financial advisor that sold it to me has vansihed and is no longer contactable, could someone please advise me of what i can do with it. Do i just keep paying into it untill it matures??? or can i use it for a deposit on a house???
Also all paperwork states a shortfall but when queried i get advise that it doesnt affect me as i dont have a mortgage????

Please Help

dunstonh

in 1997 i was sold an endowement policy to use as a type of pension as i didnt have a mortgage at the time.

Was this a savings endowment or a mortgage endowment? (two different things)

could someone please advise me of what i can do with it. Do i just keep paying into it untill it matures??? or can i use it for a deposit on a house???

really depends on the type of endowment, terms of the policy and future potential vs alternatives.

notgotaclueme

Im sorry but i really dont understand it, its a homeplan policy and the paperwork does refer to mortgages and the shortfall but i have never had mortgage, it also refers to the amount they would pay on death and the cost of life cover and critical ilness cover but has a large section at the end under the heading About our Mortgage Endowement Promise (MEP)???

dunstonh

The name "homeplan" suggests mortgage endowment rather than a savings endowment. The mention of MEP and homeplan suggests standard life. A savings endowment would not have a shortfall either as it wouldnt have a target amount.

It is probable that this was mis-sold as a mortgage endowment should not have been sold for someone that didnt have a house (armed forces or tied cottages being the exception).

notgotaclueme

Thank you so much, yes it is standard Life. i have looked on Martin Lewis' site and he has a template letter for mis sold endowements so i am going to send it off and see what happens.

dunstonh

Your focus should be that it was sold without you buying a house and you have never purchased a house. So, you shouldnt have been sold it.

The complaint goes to the advising firm. Not standard life.

holly_hobby

Hi,

Yes future house purchase sale (FHP), esp for a non-defined pch period, is definately in mis-sale territory.

Furthermore, the sale of an endowment (full or low cost) is not best adivce for pension provision, UNLESS, you were already at point of sale (ie back in 1997) ....

• already maxing out your permitted max annual pension contributions

and/or

• you wanted to retire before age 50 (min age under a personal pension at that time, unless specific occupation with a lower NRA)

and/or

• your source of income did not qualify under PPP "net relevant earnings" rules, and/or you anticipated in the future tbeing without NRE, whilst wishing to maintain your premiums and policy.

and/or

• you wanted the option of a vehicle that would release the entire fund as cash on maturity (whereby you could either elect to spend the capital as you wished, or purchase an annuity from any chosen provider at that time).

This is because personal pension plans (PPP, FSAVC or AVC) attract tax relief (at your highest rate) on your contributions (premiums) paid into them - which endowments (full or low cost) do not (although their maturity value is paid entirely free of tax if qualifying regs have been met).

Hence if the sale was based on the provision of a suitable pension vehicle, and IF you didn't fall into the above catagories that I've mentioned above, its reasonable to say IMHO, that a personal pension policy (due to its beneficial tax status) should have been recommended above an endowment (full or low cost).

So it appers from your recollection of the sale, that you may have 2 aspects of the sale to base your complaint on.

Your complaint in the first place, as Duns states, should be to the firm that sold you the policy.

Compensation (if mis-sale proven) ... as the policy was completely mis-sold and unsuitable to the advice and purpose recommended - will be a full refund of premiums & interest (either under FHP or Pension mis-sale).

Hope this helps ..... good luck x

Holly

notgotaclueme

Thanks for your help Holly, unfortunately i do not remember the company name that the advisor worked for just the advisors surname and at the moment i can only find paperwork dated back so far but im still looking.

Annisele

Standard Life will be able to tell you who they paid commission to - ask them.