Endowment Policys – Falling Short Of Promised Benefits

2007-03-08 10:33:40

( Business )



A huge number of endowment policys were sold to the public about two decades ago as a means to repay home mortgages plus leave a surplus. These endowment policys are due to mature in the next few years and more than three-fourths of them are estimated to fall short of the promised amounts.

If you are one of those who were convinced to buy endowment policy at that time, you may have been a victim of mis selling. You may want to review how you were persuaded to buy endowment policy then. You may have a basis to join thousands of policy holders who have decided to file endowment claims and get endowment compensation from the insurer.

Endowment policys were sold on the promise that your premiums would be put in an investment fund that would grow large enough to pay off your mortgage at the end of the term, and even give you a tidy cash bonus. The problem was that the products were developed and sold at a time when interest rates were averaging close to ten percent. Since then, inflation and interest rates went down and investment returns also plunged. Endowment policys were particularly dependent on the performance of the stock market to give the returns sufficient to pay the promised benefits.

It became clear in the late 1990s that the assumptions behind these endowment policys had begun to crumble. Many of them were sure to fall short. If your policy is one these, you will probably get a notice from your insurer warning you that there may not be enough to pay your mortgage.

Do not ignore that notice if it arrives at your mailbox. Check immediately if the insurer will offer endowment compensation and, if not, find out from your lawyer or the government regulator how you can go about filing for endowment claims. Thousands have already done so, and many insurers are snowed under the volume of endowment claims. It is better for you to get in line as early as possible.


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