please empty your brain below

Funnily enough the Life insurance man is coming to miss sell to me at lunch time. I shall be cautious!

Psst. Over here. Keep this to yourself, right? I can offer you today a unique investment opportunity guaranteed to pay out at least 250\\% of what you invest in just ten years! Think of what you could do with that sort of money! It's a once only offer and I need to know today.

Dodgy? Not at all! Ha ha hahaha. How could you even suggest such a thing? Well all right, it is a little bit dodgy but I'm the one taking all the risk, okay? Up for it?

Now, don't tell anyone else....


My understanding is that it’s the insurance company’s responsibility to restore you to the position you would have been if they hadn’t mis-sold you the product i.e. in your case, the equivalent of having paid off 15 years as if it had been a repayment mortgage.

It doesn’t sounds like this is the case if you’re still going to be left with a shortfall in 10 years time – they’re effectively fobbing you off with a few quid. Don’t settle for it – if necessary complain to the Ombudsman. You might well be advised to seek professional advice, perhaps the Citizen’s Advice Bureau in the first instance. A few pounds spent now could save you thousands later.

I worked in endowment policies about 9 months ago, and it was the case once you complained, that's it. It's a shame (and muggins on the end of the phone felt genuinely guilty about it), but that seems to be a general rule.

There are 3 options on most insurance policies - keep paying, stop payments and leave it until it matures, or sell it on the TEP Market. As I don't know what your insurance policy is, I can't say if you are able to utilise all the options.

My advice would be to speak to your insurance company first, then a financial advisor, to see what you can do.

But then again, if you have no dependents, does it matter if you die and the mortgage has not been paid? It's the bank's problem surely?

The endowment is a form of insurance, but in this case is actually an (once popular and very heavily promoted) investment vehicle intended as a means of paying off a mortgage at the end of the agreed period. In recent years it has come to light that many of these policies won’t have enough money in them to pay off the mortgage at the end.

The bank would get paid out if DG died during the insurance/ investment period, so they don’t have a problem. However, it’s DG’s problem if he doesn’t die and there’s shortfall at the end.

Well, I'm impressed how quickly they processed your paperwork and set up a solution (however compromised or generic). Just try looking on the bright side. After all, it's only money (that you wouldn't spend on a whole world of consumer goods)...

Sounds like I can best solve my problem by dying...

Yes. But what colour will you choose?

I might not be too pleased by that solution mind...

Whatever you do, don't ignore it. If you're not happy or you feel you've been unfairly treated, you have the right of complaint to the Ombudsman.

In the light of what you've revealed, the insurance company hasn't restored you to the position you would have been in, had the correct advice been given (a tort claim).

I'm definitely not in agreement with the ambulance chasing, compensation claim culture. This isn't compensation; this is restitution. Whilst I appreciate investments may not necessarily offer guaranteed returns, these were dodgy products off-loaded onto a gullible, mug public by slick salesmen lining their pockets at our expense. Don't have sympathy for them now. They didn't reciprocate when they mis-sold you the endowment.

The paperwork I've been sent indicates that all calculations match those which would have been applied by the Financial Ombudsman.

That's... (capital I would have repaid so far had I chosen a repayment mortgage) subtract (current value of endowment).

Unfortunately the first of those values isn't very high, because a repayment mortgage doesn't pay off the majority of its capital until close to the end of its 25 year payment period.

Bugger that Geezer, tell them you want them to make up the WHOLE shortfall. I got lumbered with an endowment mortgage but silly me went and changed it to a repayment mortgage when I moved house and cashed said endowment in!! I tell you what though, that repayment mortgage really seems to go down quickly after getting statements for years on my endowment ones that sometimes went UP!!!

And I thought the insurance schemes in my country (US) were messed up. Sheesh!

Couple of comments - *not* from a financial advisor:-
1) When interest rates went down did you use the money to pay off any capital?
2) If you sold the property now whould you have enough cash to pay off the mortgage and still have a good lump sum of money, and still have the endowment policy.
I avoided the endowment mortgage and took a repayment mortgage against the advice of an 'independant' financial advisor at about the same time as you.

I took out a £50,000 endowment around the same time as you. Even a few years ago they were predicting it would pay out about £20,000 after the 25 year term. To rub salt into the wounds, this would have actually been less than the amount paid in as premiums over the period if I had continued. Some “investment!”

There’s plenty of amortisation calculators on the internet to estimate what you would have paid off as a repayment mortgage, so you can the insurance company for yourself.

You’ve been given a life-line to sort the mortgage out before it really goes pear-shaped. Get some advice how to make best use of it.

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