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What is the Problem? |
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In
the 1980’s endowments were popular – the stock market
was performing well and in many cases the proceeds exceeded
the target
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As
stock market performance has declined lower returns mean that
many endowments may not reach their target amount
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Customers
were not always warned that their endowment depended on investment
returns & did not understand that the endowment may be
insufficient to repay their mortgage
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Our
experience in obtaining compensation highlights concerns over
the suitability, affordability and your attitude to risk of
mortgage endowments
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The
biggest problem was that salesmen received very high levels
of commission for selling an endowment.
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Key
Questions |
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Did
you need life cover?
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Did you understand that this was an investment?
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Did you understand the risks associated with the investment?
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Did you realise that your policy may be linked to stockmarket
performance?
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Were you made aware that the policy may not allow you to pay
off all of your mortgage on maturity?
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Does your policy mature after you retire?
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Were you told there was a guarantee or that there might even
have been a surplus?
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Could you really afford it?
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Is
your endowment provider on this list? |
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Number of Policies sold by firm
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| Company |
Number of Policies |
| Abbey National
Life |
200,000 |
Allied Dumbar
|
203,000 |
Axa Sun Life
(includes Equity & Law):
|
260,000 |
| Barclays Life |
120,000
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| Britannia Life (recently
renamed Alba Life): |
100,000
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| CGU (including Commercial
Union and General Accident): |
600,000
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| Cooperative Insurance |
187,114
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| Eagle Star |
160,000
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| Equitable Life |
15,000 |
| Friends Provident |
700,000
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| Guardian (formerly GRE): |
230,000
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| Legal & General |
1.1m |
| Liverpool Victoria |
7,500 |
| Lloyds TSB Life |
300,000
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| HSBC (formerly Midland
Life |
80,000 |
| Norwich Union (now part
of CGNU): |
640,000
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| Pearl |
140,000
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| Prudential |
300,000 |
| Royal London |
72,484 |
| Royal & Sun Alliance
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600,000 |
| Scottish Amicable |
850,000 |
| Scottish Equitable |
50,000 |
| Scottish Llife |
120,000 |
| Scottish Mutual |
70,000 |
| Scottish Widows |
260,000 |
| Standard Life |
1.6m |
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| This table
is not a complete list. If your insurance company or
financial adviser is not listed here you should still
contact us. |
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