Joint Life cover on clerical medical endowment question ?

Fast_Muchly

Hi,


This is rather a sad question provoked by I don't expect my spouse of 20 years and over to last much longer as she is a proper alcoholic and she is hell bent on whats going to happen.


We have had an endowment since 1992 it was designed to pay 35'000 but like all the stories is prob only going to pay 22'000 in the end.We have taken steps to avoid the blow.


I think sum assured is something like 11'500 and extra bonuses total up to around 4k or 5k at the moment.


The rather sad and awkward question is this its a 25 year policy.....what if my wife dies just before the end.I hate to talk like this but im afraid I have to face the facts.Is the policy just paid up even though im near the end or will I get £35'000 towards the mortgage.


Obviously im hoping the latter as seeing as we had more put on repayments it would now nearly pay off the mortgage should the worse happen.As we took on a 2nd mortgage finishing 7 years later than the endowment to cover a 22'000 house improvement build so we currently owe about 41'000 on the mortgage.


I don't get quite what im expected to get if I lose my wife towards the end.


Thanks for any replies in advance.


Also the policy is with the clerical medical like the endowment is.

kingstreet

You would normally see the guaranteed death benefit, the original mortgage amount covered, paid out on death.

A "low cost endowment" has two components, the investment element and a term assurance to make up the death benefit. The investment element alone is paid on maturity at the end of the term and on earlier death both are paid out to cover the full initial mortgage.

Fast_Muchly

kingstreet wrote: »

You would normally see the guaranteed death benefit, the original mortgage amount covered, paid out on death.

A "low cost endowment" has two components, the investment element and a term assurance to make up the death benefit. The investment element alone is paid on maturity at the end of the term and on earlier death both are paid out to cover the full initial mortgage.

So you are saying I would see £35'000 then not the 22'000 its expected to make should the worst happen with my wife ???. If that's so at least I wont have to worry about finance so much as well as other things.

kingstreet

Please check the policy documentation, to ensure it is a low-cost endowment and the minimum amount payable on death should be clearly visible.

Fast_Muchly

kingstreet wrote: »

Please check the policy documentation, to ensure it is a low-cost endowment and the minimum amount payable on death should be clearly visible.

Just had a look and its not a LCE it just says joint life endowment cover. On my bonus notices its saying sum assured roughly £11'500 reg bonuses added £4500 and something at the end saying total initial benefit £35'000.

kingstreet

There should be a guaranteed minimum death benefit.

If you cannot see it, call the provider and ask them to clarify.