According to a report by the Association of British Insurers, the number of endowment policies in force has dropped by almost 3 million in the last three years. Statistics show that the number of mortgage endowment policies fell to 8 million in December last year, down from 11 million in 2001.
Records from the Financial Services Authority have suggested that the average projected endowment shortfall is around £5,500, with the total shortfall in the UK estimated to be £20 billion. Negative publicity surrounding endowment policies is thought to have caused so many people to have surrendered plans, based on inadequate information.
Our view
It is no surprise given the numbers of people suffering with poor endowment projections and returns. Before stopping your endowment, be aware that some endowments are actually quite good and others are poor.
Take advice first. Contact the UK's Online Independent Financial Adviser of the Year, for help and advice.