cashing in/selling an endowment

[gordonhall]

Has anybody any experience of selling their endowment? Ours, as many, has a huge shortfall and has been a waste of time. We don't really want to use it as a savings plan (as the bank suggested) and so I was thinking of cashing it or selling it and using the money to part may off the mortgage.

 

If anyone has sold theirs, how much more did they get than just cashing it in?

 

If anyone has other useful info, please let me know it!

 

G.

[BotB]

This article might help.

 

http://www.fool.co.uk/personalfinance/compleat/1999/cp990225.htm

[Nightmare4banks]

Hi all!

 

Gordonhall my friend have you lodged a complaint about misselling of the endowment policy? if no you should try to get your money back.

 

 

Also,do as BotB suggested but you still have time - not much I understand to try and claim back your losses or get compensation.

 

I have also posted previously regarding miselling endowments - so read these posts as well.

 

If you need any further help just ask because I succeeded in getting my money back/compensation a few years ago - bloody (edit)

 

Keep us posted.

 

All the best!

 

[MODERATED: Libelous comments removed]

[gordonhall]

Don't know if this is a daft question, but can a make a claim for mis-selling an endowment, even once it has been cashed in?

 

I'd actually contacted a couple of places regarding selling the policies, but both of them claimed not to be interested in the HSBC one as it was "unit liunked" whatever that means...

[vix2000]

As far as I know you can claim if you have cashed in the policies.

 

I did try to sell mine first, and a company advertised them within the financial community, but there was no interest. To be honest, if they're worthless to us they're not going to be much good to anyone else either.

[EdInvestor]

Don't know if this is a daft question, but can a make a claim for mis-selling an endowment, even once it has been cashed in?

 

You can. For grounds to complain, check the Which site, www.endowmentaction.co.uk

 

I'd actually contacted a couple of places regarding selling the policies, but both of them claimed not to be interested in the HSBC one as it was "unit linked" whatever that means...

 

You can't sell unit-linked endowments, only those invested in "With-profits funds".

 

To ask for a quote for the latter, check this site, where you can get quotes from several traders at once:

 

www.tepexchange.co.uk

[gordonhall]

thanks everyone. We have two endowments. One, which my wife got through the halifax (now with Phoenix) has had £50 per month put into it for the last 15 years (£9K by my reckoning). We had a surrender come through today - less than 6K!!!

 

I find it mind blowing that in 15 years, they have managed to screw me out of £3K and not make a single penny of profit. These are highly paid fund managers. There ought to be legal action that I can take for the sheer incompetance of them. I know people are making claims because they were mis-sold them, but I mean actually suing these companies for being bloody useless.

 

I know with some endowments, time is passing quickly and action must be taken.

[johnmccallum]

even if you have cashed in an endowment you still have the right to complain regarding the advice given some companies have put a time limit on this of upto 3 years check with the insurance company they will let you know,regarding selling the policy you cant sell a unit linked policy.

[englishchrissy]

I Feel Like Ive Been Robbed! Thanks Friends Provident!

Hi, please take this as a warning, anyone who has a Friends Provident endowment policy. My policy matures early March this year. It was originally for £33000 plus profits. I was told by the agent that I would get at least £40000. What I actually got was £25149. I have paid in over £13000 in the past 25 years.

 

Last Mar I was told I would get £29100 if I continued and £27763 if I surrendered the policy then.

So, like a mug, I struck with them and paid another year of contributions (£500). Today I get a letter congratulating me and telling me about the maturity value. Just £25149, a shortfall of over £2600 on what I could have surrendered it for last year.

 

So I have lost £2600 plus £500 Ive paid in contributions over the last 12 months. Add the interest I could have save if I'd used the surrender value to pay off my Mortgage last year., £27000 x 6% = £1620. So I am at least £4720 worse off than I would have been, had I surrendered last year.

 

Is there anything I can do about it? Friends Provident says NO!

 

So please readers, take my advice. Stop throwing good money after bad. Surrender your policies immediately. You will thank my for saving you money in the long run. Please tell your friends to do the same.

 

Thanks for your time.

[bobbyh99]

I would look at it more like you paid in £13000 and got back £25,149, that in this day and age is a great return! If I could guarantee this rate of return in the future I would be extremely wealthy!

 

You have doubled your monthly payments every month for 25 years!!

[marksmiles]

Your comment

 

 

You have doubled your monthly payments every month for 25 years!! >

 

I don't think it is as simple as that. The measure of success must be considered against a benchmark. TO explain what I mean by example, if all the company had done was put it into the stock market using a tracker, and the stock market had gone up x10 over that period, if the company offer you something like x2, then it measures up as pretty poor.

[marksmiles]

I wonder if anyone can comment whether or not it is worth challenging payout quantum? A maturing policy can seem like a bit of a windfall on the face of it, perhaps moreso anything positive at all in these turbulent times.

 

Even so, shouldn't the assurance company be asked to account for the performance of the fund over a period of time, and if one is dissatisfied, is there any point in complaining?

[honeybee13]

Hello there. What type of fund is this policy invested in please? With profits, mixed/managed fund etc.

 

My best, HB

[marksmiles]

With Profits

[honeybee13]

Thank you for that.

 

I'm pretty rusty on all this, but I'm not sure you'd get too far with complaining. The purpose of a with profits fund was always to even out stock market fluctuations, although the companies did bring in a new type that was more volatile.

 

I would say the people to ask about complaining would be the FSA helpline.

 

Is this policy maturing fairly soon? If it isn't, you may have other options.

 

My best, HB

[marksmiles]

Thanks yes it expires next month, £35k +, I just want to know if they might be cheating. Who checks? How can I check?

[honeybee13]

Off the top of my head, I'd say the chief actuary and the DTI or whatever they're called now, plus the auditors would check. You should have received annual statements and reports from the insurer.

 

My best, HB

[gordonhall]

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