Sunday, April 29, 2007
Supposed to pay the mortgage
An endowment is an insurance policy that is supposed to pay off the principal sum in an endowment mortgage. The policy holder must pay monthly premiums. Endowment policies were issued in the 70’s and 80 and initially were able to pay off the mortgage loan completely.
Unfortunately for various reasons, many of the (endowments) these days end up not being able to cover the mortgage amount coming due. Part of the problem is that in too many cases, policyholders have surrendering them to the issuing insurance companies for ridiculously low prices.
This is the reason why the UK government has stepped in with legislation that protects consumers and also informs them that they can sell their insurance policy through an endowments policy selling service and end up receiving up to 35 per cent more for their policy.
Unfortunately for various reasons, many of the (endowments) these days end up not being able to cover the mortgage amount coming due. Part of the problem is that in too many cases, policyholders have surrendering them to the issuing insurance companies for ridiculously low prices.
This is the reason why the UK government has stepped in with legislation that protects consumers and also informs them that they can sell their insurance policy through an endowments policy selling service and end up receiving up to 35 per cent more for their policy.
