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.
•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
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