possible missold endowment

tam1970

my partner and i bought a house in 2001 still needing aloan for £29700.the adviser reccomened a 'profit builder ' endowment package.we pay £100 a month into this over 25 years, on top of the intersest on the loan.i now think this is too much and think i should have been offered a repayment plan which may be actually have been cheaper a month.we have since moved but still have the same amount loan which we are paying off very soon.i have been told the endowment policy is worthless at the moment.but im thinking of it as along term saving plan.any help/advice would be gratefull.p.s ive posted a similar thread but it didnt seem to work in case you have seen it.

EdInvestor

Post some info about the endowment

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Maturity forecasts
Interest rate payable on mortgage

dunstonh

we pay £100 a month into this over 25 years, on top of the intersest on the loan.i now think this is too much and think i should have been offered a repayment plan which may be actually have been cheaper a month.

Interest only mortgage at SVR would be £191. Plus £100 on endowment (one assumes you are rounding there because you wouldnt get a round figure like that). Repayment mortgage would cost £224.

Your premium is not consistent with a low cost endowment policy. You would expect it to be around £30pm with that sum assured and term.

Can you give more information on the product you have.

toonfish

"profit builder" was a Scottish Life policy that included critical illness. Premium does seem high but if I recall there was a whole raft of fund choices too - perhaps it's worth a lot more than you think?

I suspect there is either income protection or something built in as well, but can't recall if that was on option for certain

tam1970

EdInvestor wrote: »

Post some info about the endowment

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Maturity forecasts
Interest rate payable on mortgage

scottish life profitbuilder house purchase plan.
29700
havent had anything imformation since we took out policy exept the bank statements to say its being going out.
interest rate fixed at 4.89 ends this month.thanks.

tam1970

toonfish wrote: »

"profit builder" was a Scottish Life policy that included critical illness. Premium does seem high but if I recall there was a whole raft of fund choices too - perhaps it's worth a lot more than you think?

I suspect there is either income protection or something built in as well, but can't recall if that was on option for certain

no ive actually got seperate insurance for income protection.do you think it would be better to keep it as along term saving plan.thanks

tam1970

dunstonh wrote: »

Interest only mortgage at SVR would be £191. Plus £100 on endowment (one assumes you are rounding there because you wouldnt get a round figure like that). Repayment mortgage would cost £224.

Your premium is not consistent with a low cost endowment policy. You would expect it to be around £30pm with that sum assured and term.

Can you give more information on the product you have.

its a scottishlife profit builder house purchase plan
target maturity £29700
death benefit same
criticall illness same
says investmentchoice 100% with profits unitised
over 25 years.thanks

dunstonh

havent had anything imformation since we took out policy exept the bank statements to say its being going out.

Well if that is the case, how are you able to pass judgement on the policy?

The premium does not reflect a low cost endowment policy of £29700 over 25 years. More like a full cost endowment but they arent very common with most having matured a long tme ago.

Either the endowment has a really low target growth rate and/or has bolt ons as suggested above.

It is impossible to make any judgement about a product without knowing the position of the product and what you are paying for. Scot Life Profitbuilders were unit linked but there was a with profits fund available as an option. So, with unit linked funds available, I doubt the product is worthless as they have been coming on leaps and bounds over the last 5 years and many are getting back on track or returning to surplus. Of course, yours could be in the with profits fund and doing poorly but this is why you need to work on facts.

You need to get more info on the policy and post it.

tam1970

dunstonh wrote: »

Well if that is the case, how are you able to pass judgement on the policy?

The premium does not reflect a low cost endowment policy of £29700 over 25 years. More like a full cost endowment but they arent very common with most having matured a long tme ago.

Either the endowment has a really low target growth rate and/or has bolt ons as suggested above.

It is impossible to make any judgement about a product without knowing the position of the product and what you are paying for. Scot Life Profitbuilders were unit linked but there was a with profits fund available as an option. So, with unit linked funds available, I doubt the product is worthless as they have been coming on leaps and bounds over the last 5 years and many are getting back on track or returning to surplus. Of course, yours could be in the with profits fund and doing poorly but this is why you need to work on facts.

You need to get more info on the policy and post it.

thanks for the reply it does say 100% with profits unitised.also im only going on the original forecast i got if i cashed it in so early id get just 1800 pounds back.sorry about the little imformation but im not the most savvy with all this

toonfish

you need to get a current surrender value from Scottish Life before anyone can advise really - shame you're in the WP fund but it may be possible to switch out if you really want to keep it.

These plans were considered the dogs whatsits of endowment policies at the time but the premium/sum assured still seems wrong.

tam1970

toonfish wrote: »

you need to get a current surrender value from Scottish Life before anyone can advise really - shame you're in the WP fund but it may be possible to switch out if you really want to keep it.

These plans were considered the dogs whatsits of endowment policies at the time but the premium/sum assured still seems wrong.

ok thanks for your help