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.