L+G Compensation/endowment

In message , Stewart Devereux writes

Who gave you that advice and why?

If its a with-profits you're almost always better off selling on the market for traded endowment policies.

My 1988, £37000 target endowment just got a £10,500 surrender value. But I'm selling it for £13,600 instead. Sod the fund managers and their charges! I'll stick the proceeds in a FTSE tracker like I should have done in 1988.

Also... I believe you are still entitled to compensation even if you have sold the endowment. This attempt to combine compensation with policy surrender sounds very iffy. Ask them to confirm it in writing or say you'll refer them to the Financial Services Authority.

Si

Comment on the figures is impossible without further detail, but in principle, I do not believe that you can be forced to surrender the policy under the FSA/FOS scheme for saving the insurers money (aka the "Endowment Review").

In the courts, I believe that, if you can prove bad advice, you are entitled to repudiate the policy and get a refund of all premiums paid plus interest.

(uk.legal added)

Yes, but of course that may not be financially advantageous.

Indeed, but it usually is.