| Product: |
General Comments |
| Date: |
01/02/01 (927 review reads) |
| Rating: |
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Advantages: Can pay back a nice lump sum!!
Disadvantages: SometimesThey do not work!!!!!
****** UPDATE**********
My endownment company have finally accepted defeat and have made up what the payments should have been. They have backdated them to when the policy started and will contribute for the rest of the term.
We are the lucky ones,, we have our endownment company contributing to our monthly payments.
If you are not happy with the performance of yours and it turns out to be their fault,, get on to them until they pay up!!!!!
******ORIGINAL OPINION**********
In 1991, me and my hubby were first time buyers, and I guess you could say we went into the mortgage world rather blindly!
We trusted the finacial advisor at our local branch of the Royal Bank of Scotland ,and took out an endownment policy to repay our mortgage.
It wasn't until I decided to move house and re-evaluate my mortgage needs that I did a little investigating into my endownment policy!
The results I was given were devastating to say the least!!
It turns out that the monthly premium was far too low to reach the value of my out standing mortgage. I had been paying nearly £30.00 too little a month!!! I was advised that my policy was no where near target!!!
Cry???? I nearly had a heart attack!!!
They left it at that !!!
I fought them with endless letters and phone calls of dissatisfaction and the appropriate threats!!!(as you do when you're ticked off!!)
I am now happy to say that they are going to backdate these miscalculted premiums and make up the difference for then and for the remaining time left on the policy!!
I know some people have not been as fortunate in their outcome with miscalculated premium endownments and have had to make up the shortfall out of their own pockets.
So if you have an endownment with Royal Scottish Assurance give them a call now!!!
If you have an endownment at all,, my advise is to keep hounding them every year to makesure everything is on track and h
opefully you won't be in for any nasty shocks.
My opinion:
DO NOT BUY AN ENDOWNMENT POLICY!!!!
As it stands the risk factors are now over the odds, and this product should be abolished.
Summary:
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Last comments:
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- 04/04/01 Scare mongering, I feel. Since most people are, with an endowment policy, buying units in a fund, realistically, the lower these units are the better! This makes them ultimately cheaper to buy. It is not until you need to sell (possibly twenty- twenty-five years later) that you want a high price for those units, thus giving a return on the price you have paid. Nobody, (not even an expert) can accurately guess the future price of a unit. I think that if you’ve had an endowment running for say, eight years and it’s worth what it cost, it’s on the right track. When unit costs are low, buy buy buy! (and don’t panic- rub your hands!) |
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- 13/03/01 I got an endowment mortgage in 1991 as well. Like a lot of people, I have since converted to a repayment mortgage. So what to do with the endowment? So many people simply surrender back to the original life company - in fact the vast majority of endowments are never held to the end of the term. Selling it to a third pary policy purchaser can often get you thousands more than simply giving up the policy. www.surrendalink.co.uk is as good a place as any to find out what the policy may be worth on the open market. Holding on to the policy may be the best thing - but I'm not sure I want to wait 15 years to find out.
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- 09/03/01 This has happened to sooo many people, and is still happening. Mortgage advisors love selling you endowments as they get great commission on the insurance policies.
I have a repayment mortgage and the life assurance costs me less than £10 a month. Endowments in theirselves are a good idea as you can get very good payouts, but these depend on the bonuses you get. Linking them to mortgages is the only bad thing really. (Looking forward to my endowment policy paying out next year!!) |
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