Endowments – Endowment Policy

answers:

Don’t surrender it if it only has 5 years to go.

If you really want to cash it in, you can sell it through a broker.

Don’t forget that it is , actualy a life policy so you are covered by insurance while the policy is running.

If you don’t need the money – which presumably you don’t – then I’d keep it running. I am in a similar situation myself.

answers:

Paid up means no more premiums are due. Endowment means that after a certain number of years the beneficiary will get the money.

When you buy it you may pay premiums for years but after a certain number of payments it becomes paid up.

answers:

No
No tax to pay on any money received from an endowment at anytime.

answers:

If it has gone up in value, your gain is taxable.

answers:

When you were sold the policy, you should have received a letter setting out how it works, what the risks were and why it was appropriate for your needs. If you didn’t get one, or if it was untrue, the policy was missold.

If your policy was part of a mortgage deal, the letter (if you got one) should have pointed out that there are other ways or repaying a mortgage and that there was a risk that there might be a shortfall (i.e. The policy would not pay off all the mortgage).

If you have any concerns, write to the organisation who arranged the policy and tell them. It’s up to them to prove that it was sold correctly or to pay you compensation if it was not. However, there are time limits and you should act quickly. If you’re not happy with what they have to say, you can go to the Financial Ombudsman Bureau. Www.financial-ombudsman.org.uk

Don’t bother using one of the claim chaser companies. They can’t do anything you can’t do yourself, and they’ll want a share of your compensation.