Endowment plans were very popular in the past mainly because there were hardly any options available in the market. The popularity of such policies could also have been because of the guaranteed returns assured by the insurance providers. But with time this type of policy has lost its popularity with so many players in the market and new innovative products have taken over the insurance industry by surprise.
The insurance companies in this reference act like brokers to you, they invest your money in the market and share the returns with you. Such types of plans are long term plans which cover life. If you expire during the tenure of the policy, the sum insured plus the accumulated bonuses is payable to the nominee or beneficiary. Special feature of the plan is that even on survival the policy holder is payable by the insurance company.
But it is surprising that the investments made by the insurance companies lack transparency and you have no control over the investment made by the companies. You have no idea where the money is being invested and how much and so on. The insurer has monopoly position over the policy holders here.
The plan has a competition now, with private players in the market Unit Linked Plan has been introduced.
The premium for Endowment Plan is significantly higher than any other type of Term life insurance plans for the same amount of sum assured because it is insurance plus investment plan clubbed together offering a wider option to the consumers.
If you have been reading the financial press you may already know this.
And if you have recently received a Red Letter from your endowment mortgage lender then you will already certainly know! So what do you do now? You must act promptly to ensure you can meet the potential shortfall when your endowment matures.
You may be unhappy with the way your policy was sold to you in the first place, and you would be in good company if you were, as hundreds of thousands of people have been and are taking steps against their endowment company. If this applies to you too, you do have a right to make a complaint, providing that you do something about it and complain within three years of receiving your first Red Letter.
Explain your situation and tell them that you wish to make a formal complaint.
In Britain you can also discuss the matter with the Citizen's Advice Bureau and you can visit their website at www.citizensadvice.org.uk or you can try the Financial Services Authority, their web site is www.fas.gov.uk/consumer.
If you reside outside the United Kingdom and suspect you have the same problem, the first thing you must do is to check if the endowment policy you have will be sufficient to cover your mortgage when it matures. If you find that it isn't, then make sure that you do something about it now before it is too late, and thus ensure that you don't have a serious problem somewhere further down the line.
Read another reviews about meaning of endowment, Harvard endowment fund, and selling an endowment policy.
The insurance companies in this reference act like brokers to you, they invest your money in the market and share the returns with you. Such types of plans are long term plans which cover life. If you expire during the tenure of the policy, the sum insured plus the accumulated bonuses is payable to the nominee or beneficiary. Special feature of the plan is that even on survival the policy holder is payable by the insurance company.
But it is surprising that the investments made by the insurance companies lack transparency and you have no control over the investment made by the companies. You have no idea where the money is being invested and how much and so on. The insurer has monopoly position over the policy holders here.
The plan has a competition now, with private players in the market Unit Linked Plan has been introduced.
The premium for Endowment Plan is significantly higher than any other type of Term life insurance plans for the same amount of sum assured because it is insurance plus investment plan clubbed together offering a wider option to the consumers.
If you have been reading the financial press you may already know this.
And if you have recently received a Red Letter from your endowment mortgage lender then you will already certainly know! So what do you do now? You must act promptly to ensure you can meet the potential shortfall when your endowment matures.
You may be unhappy with the way your policy was sold to you in the first place, and you would be in good company if you were, as hundreds of thousands of people have been and are taking steps against their endowment company. If this applies to you too, you do have a right to make a complaint, providing that you do something about it and complain within three years of receiving your first Red Letter.
Explain your situation and tell them that you wish to make a formal complaint.
In Britain you can also discuss the matter with the Citizen's Advice Bureau and you can visit their website at www.citizensadvice.org.uk or you can try the Financial Services Authority, their web site is www.fas.gov.uk/consumer.
If you reside outside the United Kingdom and suspect you have the same problem, the first thing you must do is to check if the endowment policy you have will be sufficient to cover your mortgage when it matures. If you find that it isn't, then make sure that you do something about it now before it is too late, and thus ensure that you don't have a serious problem somewhere further down the line.
Read another reviews about meaning of endowment, Harvard endowment fund, and selling an endowment policy.
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