Endowment Compensation – Getting Your Money Back

2007-03-08 10:33:40

( Business )



In the past two decades, an agent may have convinced you to buy endowment policy as a means to repay the mortgage and a tidy cash bonus besides. That was the idea you believed then, though you may think now that there was mis selling of the products. As the endowment policys mature in the next few years, the industry now admits that some mis selling happened and forecasts that many policies will fall short. In short, you may find there isn’t enough money to pay the mortgage. If indeed there was mis selling when you bought the endowment policys, you are entitled to endowment compensation.

There are independent companies that offer assistance in filing endowment claims to get suitable endowment compensation from the insurers. If you believe you are a victim of mis selling at the time the agent convinced you to buy endowment policy, you must review the facts of your situation and see if you can support a claim for endowment compensation.

Endowment claims may be filed direct with the company or with the government regulator. Some insurers do offer endowment compensation, so check with yours if they entertain endowment claims. You must determine their basis for computation and compare the amount to what your position would have been had you taken an ordinary repayment mortgage instead of following the agent’s idea to buy endowment policy as your route towards mortgage repayment. If their offer is below your position, do not take it.

You will then have recourse to the government regulator. There, you will have to prove that endowment mis selling occurred in your case. The regulator normally will advise you, if you previously filed endowment claims with your insurer, to allow some time for them to respond to your claims before the regulator’s office will take action. If there is need for the regulator to act in your case, the office will inform you on subsequent requirements you need to fulfill.

The mechanisms for getting endowment compensation are now in place. There is still a chance for you to get your money back.


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