ENDOWMENT FLOPS EXPOSED

Tens of thousands of homebuyers who were persuaded to take out mortgage endowment policies with insurance companies in the 1970’s and 1980’s are now counting the cost as the expected value has crashed over the last 25 years.

Some of the worst cases are plans sold by Standard Life, Scottish Life, General Accident, Scottish Widows, Legal and General, Norwich Union, Friends Provident, Scottish Amicable, Prudential, Royal London Life and AXA Sun Life, all sold by heavily commissioned sales executives as expected to be worth more than £100,000 at maturity and all showing a 70%+ shortfall on the expectation. A Standard Life plan expected to mature at £110,339 is worth just £23, 814, a shortfall of nearly 80%

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