Companies selling endowment policies have to follow certain rules. If you think you have been treated unfairly, you can make a complaint. You may be able to do this even if you have already sold or cashed in your policy. You should consider this option if:
- you were advised that your endowment policy was guaranteed to earn enough to pay off your mortgage, and there is now a shortfall
- you were sold a policy that wasn’t due to mature until after your retirement and your adviser didn’t consider whether you would be able to afford to keep up with payments after you retire
- you were advised to cash in one endowment policy to take out another
- you weren’t advised that you were paying for life insurance as part of your endowment, and you didn’t need it
- your mortgage will end before your endowment policy matures
- you weren’t advised that your money would be invested in the stock market, which means it isn’t guaranteed to pay off your mortgage
- you weren’t told that if you decide to cash in or sell your policy early, you will have to pay penalties, and may not get much for the policy
- you weren’t informed of any other fees and charges involved.
You may also be able to get a small amount of compensation if you have been seriously distressed or inconvenienced by the shortfall. If you think you have a valid complaint, you should take action quickly. If you don’t, you could lose some or all of the compensation you’re entitled to.