Policyholder retired before an endowment plan came to maturity

*Please note* This site is for information purposes only - we are not accepting any new cases from January 2007

Case study

The following case discusses another all too common situation. The "adviser" when conducting the endowment product sale - fails to identify that the plan matured after the policyholder (claimant) retired.

The client in this case came to us because they felt that they had been sold a lengthy and unnecessary endowment plan by an insurance salesman.

The claimant was 45 when the plan was sold and would be 70 on maturity. He was due to retire at 65 on a modest Council workers pension. We presented a complaint to the endowment company arguing that the adviser / salesman did not check, at the time of incepting the plan, whether the claimant could afford the mortgage payments after he retired.

No questions were asked about the claimants income and pension levels post retirement. As a result the option of either reducing the mortgage term or simply opting for a repayment plan, was never explored.

The endowment company upheld the complaint and made an offer to place the claimant back in the same financial position he would have been in, had he been advised to choose a repayment mortgage.

In addition the endowment provider - following a lengthy debate - agreed to reimburse all premiums from the date of retirement until the date the plan matured. This allowed the claimant to recover premiums that would not have applied had the plan been arranged for the correct period and had maturity coincided with his retirement.

As this case illustrates, "retirement" claims can be very complex. In order to ensure that adequate redress is received, it is  recommended that you instruct a regulated complaint's handler to represent you.

The client in this instance won £14,661 in redress compensation

More endowment advice:

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• How to proceed with a PPI claim
• Large loan PPI claims
• PPI FAQs
• Reclaim mortgage PPI
• PPI events flowchart
• About our PPI complaints service

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