Missold/underperforming endowment - my lucky result may be of benefit to others.

robin2204

Some years ago I was sold an endowment for £40k - it has consistently underperformed, and the projected end value has dropped to around £24k which I think may be optimistic - a significant shortfall.

About 10 years ago, I realised there was a problem and tried to make a misselling claim, which was rejected, and fool that I was, I didn't bother to take it to the ombudsman.

Early this year, I became aware that the endowment premium included a portion of mortgage protection insurance and since I'd been forced to retire early through ill-health, I decided to try to make a claim. The company rejected my claim because I have a pre-existing medical condition which they had not been notified of.
They sent me a copy of the original application form, which had no mention of my condition, though I had told the 'advisor' about it - it affected the way I walk, so was obvious, and he could not have missed it - if I hadn't mentioned it, it would have been obvious to him - my guess is he was desperate to make the sale at the price we were able to pay at that time.
The plus side is - instead of just returning the insurance portion of the premiums, as I expected, they are terminating the endowment and refunding all of the premiums. In fact, it works out that if I pay the refunded total off my interest only mortgage, and pay the same amount to the lender each month as I was paying to the endowment for the next 6 years, in addition to the normal interest payments, I just about clear the mortgage without the shortfall just as the endowment was meant to do. Suits me fine...I don't have a £16k shortfall anymore....

But, I've been thinking - for me it came about by luck, but it may be useful to others who may have an underperforming endowment and haven't been able to make a successful mis-selling claiim.
If you were to go to your doctor with some ailment say a sore leg, and just mention that it's never been right since you broke it on holiday in Spain as a kid (something that would explain why the doctor has no previous note about it) - that would then go into your medical records - then try to claim on the insurance some time afterwards that you can't work because of pains in your leg, or whatever you've chosen - there's a pretty good chance that they would reject because you had a pre-existing condition/injury that you hadn't informed them of - and repay all your premiums. Obviously do your sums first and make sure that that would be of benefit to you - I suspect in many cases it will be.
Cheating - maybe - but a lot of us are in this boat because they were cheating so - why not ? In fact, it works because they are trying to wriggle out of making payments that in most cases are justified....just give them something to wriggle out of and it could solve your shortfall problem.

mrginge

There are some very intelligent and innovative criminals in this world. Robin2204 is not one of them.

ValHaller

Was your pre existing condition relevant to your ill-health retirement?

dunstonh

They sent me a copy of the original application form, which had no mention of my condition, though I had told the 'advisor' about it - it affected the way I walk, so was obvious, and he could not have missed it - if I hadn't mentioned it, it would have been obvious to him - my guess is he was desperate to make the sale at the price we were able to pay at that time.

So, why did you sign the application knowing that it was not declared?

The plus side is - instead of just returning the insurance portion of the premiums, as I expected, they are terminating the endowment and refunding all of the premiums.

Which is normal when voiding a policy due to non-disclosure.

But, I've been thinking - for me it came about by luck, but it may be useful to others who may have an underperforming endowment and haven't been able to make a successful mis-selling claiim.

Not really as it means you admitting to trying to obtain insurance due to non-disclosure and becomes a declarable event on any future insurance you buy (have you ever had insurance cancelled, voided etc). That will make your premiums sky rocket and find few companies in the mainstream willing to offer terms.

Cheating - maybe -

Not cheating. It is fraud.

warwicktiger

dunstonh wrote: »

Not really as it means you admitting to trying to obtain insurance due to non-disclosure and becomes a declarable event on any future insurance you buy (have you ever had insurance cancelled, voided etc). That will make your premiums sky rocket and find few companies in the mainstream willing to offer terms.



This will not bother the op, he simply won't declare it!

robin2204

Yes dunstonh, your points are valid. We signed the original documents, having given the info to the 'financial advisor' who had then rewritten them to tidy them up, assuming the information that should have been there, was there. This was the same 'financial advisor' who misled us on the endowment in the first place. As I pointed out - I couldn't have hidden my condition if I tried; this was not done deliberately by us - it was done by the 'advisor', presumably because he needed to make the sale...
I accept we should have checked everything before signing, but it seems that we must have foolishly trusted him - it may even be that the info was there when we signed it, and that page replaced later - this was 16 years ago, and I can't remember details like that now...
I'm nearly 60 - only had life insurance for the mortgage anyway - my pension should be secure and regular, and my wife will get half my pension if I die, so will be able to make the payments anyway so I don't foresee there being any great problem with having to declare that I've had a policy voided.
You're right too - it is fraud if done deliberately - but who in their right mind would want to plan something like this if endowments were performing like they were claimed to.
Things have worked out ok for me - ok not great - no big surplus as promised at the end as well as paying off the mortgage.
How many of us when filling out an insurance application can remember every little knock and scrape we've had in our lives up to that point, and put them all down. That could be used to your advantage. Have a look around these forums at some of the tricks and actions of these companies - remember, I did make a reasonable, to me anyway, claim for mis-selling, which was rejected.
It may be of benefit to someone, that's why I shared it.

robin2204

Valhaller - It was indirectly connected - had a muscular condition which caused a pronounced limp, and which unbeknownst to me, and the GPs, was causing problems with my joints leading to arthritis - then I had a minor motor accident, which caused inflammation in the knee joints and which makes it difficult to stand or walk very much.