What Is An Endowment Policy?
An endowment policy is essentially a life insurance policy which is obligated to pay out after a set time period or upon the death of the policy holder. The time frames can vary depending on the age of the individual and the policy itself, and in some cases these policies may pay out upon diagnosis of a terminal illness.
You may be entitled to claim if at any point the terms of the policy weren’t clearly articulated to you when you took it out or if the information you received was inaccurate in any way. Your advisor is obliged to make a full assessment of your financial situation and the levels of risk involved in taking out an endowment policy of this nature, and they must also make the fees and charges involved clear to you as well.
Mis-sold Endowment Policy Claim Time Limit
It is important to note that there are often time limits to consider when attempting to lodge a claim for a mis-sold endowment policy. Typically you will receive a warning letter informing you that there is a significant risk of shortfall, and from this point you will have three years with which to officially make your complaint. You will also receive a letter six months before your end date, and any complaints submitted after this date will be dismissed as being simply too late.
The first step is to contact the company who sold you the endowment policy themselves. There are some scenarios whereby the company who mis-sold the endowment policy actually no longer exist, and if this is the case then the best option is to get in touch with the Financial Services Compensation Scheme to discuss your options in further details, you still have Consumer Rights.
Once you have submitted your complaint the company should respond to your query within approximately eight weeks. You may be offered compensation within this response, and if that is the case then you will be able to personally determine whether or not you feel that this is sufficient. If you are not satisfied with what is being offered then you are within your rights to complain to the FOS (Financial Ombudsman Service) in a further 6 month time frame for an independent review.