endowment query

helene_2

We have 2 endowments, both with London Life. One taken out in 1985(12000), the other in 1990(18,000) when we moved to a new flat.
In 1997 my husband received an inheritance and we used that plus savings to pay off our mortage. We were advised to keep paying into the endowment as cashing it in would mean we would loose money we had already paid in.
It is now clear we will have a shortfall of about £10,000. Although we had clearly (according to the rules) been mis-sold the policy inertia had stopped us from acting but now we have used the Which letter to start the process.
A few questions
London Life has sent us a questionnaire, the last part of which asks for details of our current financial situation, asking exactly how much we have in every form of savings. I don't feel happy sharing all that with the folk at London Life. Can we refuse to give them this information and what would happen if we did?
Is our current financial situation linked to compensation?
What effect, if any, is there of our having paid off our mortage?
Should we continue to pay into the endowment? a) if we get compensation b) if we don't? Were we given the correct information in 96 to continue paying in rather than cashing in?
Thanks for your help

EdInvestor

helene wrote: »

London Life has sent us a questionnaire, the last part of which asks for details of our current financial situation, asking exactly how much we have in every form of savings. I don't feel happy sharing all that with the folk at London Life. Can we refuse to give them this information and what would happen if we did?

You don't have to tell them: they are probably fishing for information because they have lost/destroyed the file. If this is what has happened, it's in your favour as they will be unable to defend the misselling claim.

Is our current financial situation linked to compensation?

No

What effect, if any, is there of our having paid off our mortage?

Calculations for any redress will stop at that point.Unfortunately this probably means that you won't be due any compensation money as endowments did not start to fail until after the market crash starting in 2000.

Should we continue to pay into the endowment? a) if we get compensation b) if we don't?

Post some info about it:

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Were we given the correct information in 96 to continue paying in rather than cashing in?

At that point endowments were performing as expected, so yes, particularly with the more recent one, as charges and fees were front end loaded.That policy would only just have started to make a return, so you m ight well have got back less than you paid in.