Endowment Compensation

15 July 2004
What is the Problem?

In the 1980’s endowments were popular, the stock market was performing well and in many cases the proceeds exceeded the target. As stock market performance has declined lower returns mean that many endowments may not reach their target amount. Customers were not always warned that their endowment depended on investment returns & did not understand that the endowment may be insufficient to repay their mortgage. The biggest problem was that salesmen received very high levels of commission for selling an endowment. Check below to see if you are entitled to Endowment Compensation.

Key Questions

•Did you need life cover?

•Did you understand that this was an investment?

•Did you understand the risks associated with the investment?

•Did you realise that your policy may be linked to stockmarket performance?

•Were you made aware that the policy may not allow you to pay off all of your mortgage on maturity?

•Does your policy mature after you retire?

•Were you told there was a guarantee or that there might even have been a surplus?

•Could you really afford it?

Below is a list of endowment providers and the number of policies sold. Is your policy on the list?

Abbey National Life 200,000

Allied Dunbar 203,000

Axa Sun Life (includes Equity & Law) 260,000

Barclays Life 120,000

Britannia Life (recently renamed Alba Life) 100,000

CGU (incl. Commercial Union & General Accident): 600,000

Cooperative Insurance 187,114

Eagle Star 160,000

Equitable Life 15,000

Friends Provident 700,000

Guardian (formerly GRE) 230,000

Legal & General 1.1m

Liverpool Victoria 7,500

Lloyds TSB Life 300,000

HSBC (formerly Midland Life) 80,000

Norwich Union (now part of CGNU) 640,000

Pearl 140,000

Prudential 300,000

Royal London 72,484

Royal & Sun Alliance 600,000

Scottish Amicable 850,000

Scottish Equitable 50,000

Scottish Life 120,000

Scottish Mutual 70,000

Scottish Widows 260,000

Standard Life 1.6m

If yes, to get a FREE Endowment Compensation information pack Click here