Independent Financial Advisers are calling on the Association of British Insurers to force insurance companies to make policyholders aware of shortfalls in their endowments. Many insurance companies are writing to policyholders giving details of potential shortfalls, following even more poor stock market performance. Insurance companies that told policyholders last year that their endowments looked on target, are not likely to be now.
One case has recently come to light where a Royal Sun Alliance endowment policyholder was told his policy was in surplus. The policy then matured £10,000 in deficit but the policyholder was not told until the maturity date.
Our Tip:
If your mortgage repayment is linked to an endowment, keep regular checks on its progress. If you are told there will be a shortfall, don't ignore it, and take advice. There are many options for you but forgetting about it should not be one of them.
Download a copy of our free fact sheet "Endowment Mortgage - Don't Panic" in the client centre downloads area.
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