An endowment policy is an investment plan that is designed to pay a lump sum at its maturity. Normally, endowments are taken out with an interest-only mortgage, but can also be used as investment plans for specific future events. Endowments can also provide life cover.
Once you take out an endowment policy, you will be paying regular premiums and each year you should receive an annual statement telling you how your policy is performing. The money paid to the endowment is normally invested by the policy provider, with a view to creating a capital growth, which will be returned to you in a lump sum at the end of the policy term.
Different endowment policies may have slightly different terms, but most of them do not provide for a guaranteed sum at the end of the term, as this is dependent upon the performance of the policy.
Circumstances in which an endowment can be mis-sold
How an endowment is sold and administered can give rise to a claim. This could include the following scenarios:
- There has been a failure to advise on the risks associated to the endowment policy and the circumstances in which it may underperform;
- You were led to believe that you would receive a guaranteed sum at the end of the term or that the endowment would pay your mortgage off;
- The endowment was not suitable for your circumstances; or
- Your advisor failed to disclose any conflicts of interest and commission.
How we help
Our team can assist you with the assessment of your claim and advise you on the best avenue to seek compensation, whether it is via court proceedings, a complaint to the Financial Ombudsman Service, or via the Financial Services Compensation Scheme.