I've done a fair amount of research on this one, but am struggling to work out how compensation is calculated for a policy that goes beyond retirement AND was sold on the understanding that it'd have enough value BY retirement age. Anyone have any knowledge or experience on this?
BACKGROUND
- My parents took out a policy in 1988 that would take would mature when my father was 70 (5 years over)
- They are both now retired and in fact the policy has ALREADY matured.
- The company has already offered to pay the policy shortfall in full.
QUESTION Given that they were told to expect the policy to pay off the loan amount at
65, can they not claim that the value of the redress should be the total payments made (mortgage interest and endowment fees) for the full 5 years after retirement as they had not budgeted for these additional 5 years of costs?
If not, do they have a claim at all, over and above the current offer of making up the shortfall?
Chris