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 Endowment
This website is about endowment, compensation,
shortfall, mis-selling, sales, effect, insurance - a basic
guide to endowments in the UK. An endowment is a life assurance
policy that is designed to help pay off a mortgage by investing
the monthly premiums paid to the provider. The original mortgage
sum is covered by the policy, while the interest on the mortgage
is paid for by the policy holder. Eventually the policy holder
receives a tax-exempt lump sum once the endowment matures.
Traditionally, endowment policies were able to pay off the
mortgage and still have some money left over afterwards for
the buyer. However due to the present situation of tax increases
and a less profitable investment market, not all policy holders
receive enough to even pay off the mortgage.
Generally endowments provide a life cover
that guarantees that should the policy holder die, a portion
of the sum is returned to his or her estate. As the mortality
rate increases with age, endowment policies tend to be more
expensive the older the buyer is when they purchase one.
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Wrongfully sold endowments
A large number of endowments were originally
sold to people who were not properly informed about
the possibilities of a shortfall. As a result, throughout
the UK, thousands of policyholders face the anxiety
of not knowing for sure whether the payout they will
receive by the end of their endowment will actually
be enough...
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Understanding
the market
Not all policy holders have been happy
with their endowments, thus opening the market for TEPs
or Traded Endowment Policies. If you have a endowment
policy you need to trade, there are some general information
you need to know about the market and how to play it.
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How much do I receive
if I am entitled to compensation?
According to the FSA, the standard used
for assessing compensation claims is to compare your
current financial situation (taking into account your
endowment mortgage) with your possible situation had
you taken out a repayment mortgage instead.
Find more answers to your different
endowments issues in our frequently asked questions
page...
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go to questions |
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