Endowment Life Insurance

Endowment life insurance is like a savings scheme that comes with life insurance attached. You make regular payments into the policy, and then it will pay out a lump sum either at the end of the policy or if you die during the term of the plan. Endowment life insurance is often linked to your interest only mortgage, so that, providing the sum assured is sufficient, if you die during the term of your mortgage, your mortgage is guaranteed to be paid off, so if the worst happens, your family will not have to worry about the loss of your income or losing their home.

However, many people have found that the policy has:

not grown enough over its term
or will not grow enough by the end of its term, to cover the outstanding mortgage debt and they have been left to foot the remaining bill, which could be tens of thousands of pounds.

If you have been told that your endowment life insurance policy is unlikely to pay off all of your mortgage at maturity, or you feel you have been mis-sold, you might be able to get compensation or sell it, rather than surrendering it back to the company you bought it from.

For FREE quotes and advice on the other life insurance policies available to you, such as basic life cover, or decreasing term life cover which is also designed to pay off your mortgage if you die, click on the link below to fill in our quick form and an advisor will call you back.