Useless Endowment Policy... some advice please.

Hi,

Before I ask my question I have to admit when it comes to finances I know nothing so I would like some helpful hints/advice if anyone can help.

I have an endowment policy I've been paying into that is going nowhere fast and currently has roughly £4800 paid into it. I was advised by someone "in the know" that as we are currently strapped for cash (read: desparate) and we are paying into a policy that simply won't pay out anyway, we are probably best to surrender the policy and use the cash that comes out to pay off some of our debt.

I have a letter today that contains the following:

"Payment is now asked under the Policy and in consideration of [companyname] agreeing to pay the full amount of the claim proceeds despite loss of the Policy, I AGREE to compensate [companyname] against all such loses, claims, costs and demands they incur because of such payment, and to give the original policy immediately to [companyname] if found."

So, in English?? What can they mean by "loses, claims, costs and demands" that might be made against [companyname] ? Who will be making the claims and demands against them and what should I be looking for in the policy to make sure I'm actually getting some of my £4800 back???

I'm completely lost, but know I was advised to surrender the policy, although it was in an unofficial capacity that I was advised.

I also realise I'm an idiot for not learning anything about financial matters, which of course I'll be rectifying from this year onwards!

Thanks in advance.

Reply to
anthony
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In message , anthony writes

Its a 'lost policy declaration' which means that of somebody else turns up at the InsCo Head Office with your policy together with (say) a properly uttered assignment in their favour signed by you which transferred ownership of the policy to them, then you would refund the insurance company. Its quite standard. Are you SURE the policy isnt being held by a mortgage company somewhere to support a mortgage?

Reply to
john boyle

Thanks for your reply. Now I realise that's what I'm unsure of, whether the mortgage lender I got my mortgage through ties directly into the endowment or not. I think I'm safe and its a purely separate policy that I solely have in my name with no mortgage lender holding direct rights, but your question is good as its made me STOP and THINK ;-)

I could be wrong it just trying to outright surrender the policy but I suppose the only way to find out is a) dig out my policy and actually read it thoroughly and b) outright ask my mortgage lender.

Thanks.

Reply to
anthony

If you would care to provide policy details via our website

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assuming it is a traditional "with profit" then we will value your policy, and thereafter aim you in the right direction.

Reply to
Derek Way

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