Endowment Policy

Greenberetmum

I have been divorced for nearly 12 years but when I was married, both myself and my ex husband took out a joint endowment mortgage buying our new home (in approx 1999) At some point after this (prob 2009) we switched to a joint repayment mortgage. Whenever I ask my ex husband what happened to the endowment policy, he states 'oh it's gone'. I am unable to get anymore information from him. What I would like to know is, if there is anything I can do to find out what happened to it?

Emmia

Could you write to the bank etc. that provided it? Do you have any information like reference numbers etc.

silvercar

Who has been paying the premiums? Only asking, because if no one was paying it either would have been made paid up and the amount generated to that point remain invested or the life insurance part of the monthly cost would have been deducted from the value of the policy each month until it was eroded completely and would indeed be “gone”.

Was it a 25 year mortgage? If so the endowment would no doubt have been the same length, so ended in 2024. So in that sense it is “gone”, but gone where? Presumably your mortgage situation was sorted as part of your financial settlement in divorce, your endowment should have been considered as part of the divorce.

FrugaiMacDugal

So no progress since this thread.

Greenberetmum

Thank you for all of the comments. The endowment did not form any part of the divorce and as far as the proceedings of the house, it was split 50/50.
It would help to understand what actually happens to an endowment policy itself of which, after 12 or so years is switched to a repayment mortgage? 

Emmia

Greenberetmum said:

Thank you for all of the comments. The endowment did not form any part of the divorce and as far as the proceedings of the house, it was split 50/50.
It would help to understand what actually happens to an endowment policy itself of which, after 12 or so years is switched to a repayment mortgage? 

Have you tried contacting the bank to ask them?

silvercar

Greenberetmum said:

Thank you for all of the comments. The endowment did not form any part of the divorce and as far as the proceedings of the house, it was split 50/50.
It would help to understand what actually happens to an endowment policy itself of which, after 12 or so years is switched to a repayment mortgage? 

There are options. You can make it paid up ie you don’t pay any more contributions but the money stays invested, so the life cover is reduced and so is the amount you would expect to get at the end of the term.

Alternatively, you can continue contributions and it carries on as it always was intended. At the end of the term you get paid out, but obviously without a mortgage attached you don’t have to use it to clear the mortgage.

Another option is to cash it in early. This gives a very reduced payout as there won’t be any final bonuses and there won’t have been as many years and payments invested.

In the case of what was a joint policy, it would have been possible to transfer it to a single life policy at some stage along the way.

I’m not really understanding how an ongoing policy as a joint investment offering joint life covering could not be any part of the divorce. It should have been part of the negotiated financial settlement. 

silvercar

It could be that your ex is right. When you transferred to a repayment mortgage you may have taken the decision to cash in the endowment policy and use the proceeds to lower your repayment mortgage.

MWT

If it was originally a joint policy it is unlikely that your husband could have done much with it without your involvement, are you sure it survived the change to a repayment mortgage?