endowment compensation??

dunstonh

NU are increasing terminal bonuses and have just increased the bonus rate. NU have bottomed out and are on the climb again.

Interest rates on the other hand are looking likely to begin a decreasing trend.

Katykat

Based on your advice Dunstonh, does this mean that you think NU are improving their payouts and therefore it would be sensible to stick it out for the rest of the term ( 4 years) ?

bbford

My mum took out a policy with Standard Life in 1989.

We applied for compensation under misselling as it matures after her pension age she is now 68 and it matures in another 12 years.

Thankfully she has managed to pay off her mortgage due to a resell, however she had to do an equity release to help maintain payments on the endowment policy.

She has been offered £7,365 does this seem a good deal?
Many thanks for any advice.

EdInvestor

Hello bbford

Is this a compensation payment you're asking about, or a surrender offer?

I wouldn't surrender a Standard Life endowment now because next year it plans to demutualise and your mother should get a windfall.

bbford

Thanks EDInvestor

This is a compensation payout not a surrender, so she will still have her policy to benefit from the demutilization next year.

We do nto know though if the compensation she has been offered is on a par with similar claims.

Is there any way of finding out?

dunstonh

Plus remember that most long term standard life policies are still paying out surpluses even though they issue shortfall letters right upto and including the year before. Just because a shortfall letter is issued, it doesnt mean there will be a shortfall. This is due ot the flawed projection method that is used.

EdInvestor

bbford wrote:

We do nto know though if the compensation she has been offered is on a par with similar claims.

Is there any way of finding out?

BBF

The amount of redress is worked out by a highly complex formula laid down by the FSA/ombudsman and is aimed at putting you in the same situation you would be in if you had taken out a repayment mortgage.

It's vitually impossibly for the individual to check the calculations , but I've not run across any evidence ( or accusations) of cheating or mistakes in this particular area ( once they have actually accepted the complaint they the companies seem to play it straight.)

Has anyone else hrard any reports?

I do remember one person complaining about not being compensated for being charged for unnecessary life assurance - IIRC the company sorted that once it was pointed out.