Norwich Union Endowment

SimonLloyd42

Dear All,

In 1994 I purchased my first property having been persuaded by Fairbriar Homes' sales representatives and mortgage brokers to take on a 25 year endowment mortgage. I have been paying £97.01 every month since then.

I have recently received correspondence from Norwich Union advising that I will be entitled to a share of a large historic estate over each of the next three years but also that my endowment is highly unlikely to be sufficient to pay the original loan. I have repaid the mortgage since then. Should I ask Norwich Union if I can make my "policy paid up", stopping premiums without surrendering the policy, which has 11 years to go?

Advice would be appreciated.

regards

Simon Lloyd

dunstonh

I wouldnt make it paid up. You lose the mortgage promise value (if one) and you lose the life cover. Plus you may reduce your payout if and when NU do pay out. NU are also paying enhanced bonuses over the next 3 years.

Many of the NU plans showing shortfall have been put into shortfall positions on paper on purpose. This allows NU to start timebarring them. They achieve this by lowering the projection rates, not including terminal bonus accrued to date and not including any mortgage promise value and doing this before the special bonuses are paid.