Endowment Surrender: How To Avoid Getting Short-Changed By Tony Head

Endowment surrender allows you to reclaim some of the value from your endowment policy by surrendering it back to the insurance company that sold it to you. The amount you receive when you surrender your policy is often significantly less than the actual value of the policy, but if your personal circumstances mean that you have to free up some of the capital you've invested in the endowment policy, you may feel like you have no choice but to accept the reduced amount offered by endowment surrender.

Don't Surrender Your Endowment - Sell It!
Many people who opt for endowment surrender are simply not aware that there are other options available to them. There is now a legal requirement for insurance companies to notify customers that endowment surrender is not the only way to recover value from their policy.

When you sell your endowment you could receive up to 35% more than the endowment surrender value of your policy. Provided your endowment is a sufficiently mature with-profits endowment policy, finding a buyer for your endowment policy is simple.

Endowment Selling Vs. Endowment Surrender
So if you need to convert your endowment policy into cash, make sure you look into selling the policy before you consider endowment surrender. Endowment surrender should always be your last resort - if you want to maximise your return from your policy, it definitely pays to be aware of all your options and look into how to sell your endowment policy. Endowment selling has become increasingly popular in recent years, and you'll find the process is much more straightforward than you might have thought. Some companies will tackle all the legal paperwork for you completely free of charge; they will even talk to the life company on your behalf once you have provided them with a simple signed authorisation.

This article was written by Tony Head on behalf of aap. aap is the UK’s largest specialist in the buying and selling of endowment policies, and could deliver up to 35% more for your policy than its endowment surrender value.

For more information on how to sell your endowment through aap and to get a free valuation, visit [http://www.aap.co.uk].

Article Source: http://EzineArticles.com/expert/Tony_Head/64232

Leaving the Endowment Policy in the Care of Kids or Company By Christina M Thomas

Now that you've set up the endowment policy to fund the future of the summer house you've bought for your children (or yourself, for that matter), other somewhat thorny questions remain. Among them: who will take care of the fund, itself? Are your kids responsible enough to make sure everything stays on the level? Are they much too busy with the rigors of their own lives and families to be burdened by this additional responsibility? It may at first seem like a minor question; but, the future of your established endowment depends on it. Luckily, there are several options available...

Endowment Management

One of the better material ways to leave a mark for one's offspring is to establish an endowment, usually for a vacation retreat of some sort (log cabin, summer home, winter lodge, etc). Securing enough money for the principle, such that most or all of the future expenses of such a gift will be taken care of, is often a lasting source of appreciation between parent and kid(s), as well as future generations. Once the money is secured, however, there is often one crucial consideration that a parent must make upon establishing an endowment, and it is second only to the amount of money intended to be left behind: who should manage the endowment policy. Unless responsibility is to be delegated to a child or children, there are really only two options - either the insurance company from which the endowment was procured, or an external manager (as in a trust company) independent of the endowment-assigning-company altogether. There are good reasons for doing either and these are of course dependent on the parent's ultimate wishes for the management of the endowment.

Trust Company Management

In this scenario of endowment policy management, the policy is put into the hands of a professional investment manager, specializing in trust funds. Performance is secured by the fact that the "leasing" company (the company that originally drafted the endowment policy) doesn't just give the policy away; the trust company is merely hired, and can be fired for poor performance. This option is usually a good one for endowment policy-establishers who have questions as to the responsibility of their heirs, or even of the original company, if they don't actually specialize in managing endowments, just in selling them.

Of course, distrusting ones heirs isn't the only good reason to outsource the management of an endowment policy; it can also be done simply to ease the responsibility of annual management of the endowment, and all of the related investment information (stocks rising and falling, etc). In the scenario of trust-company-management, they will even take care of the associated taxes, reporting them back to the original company, which may or may not (depending on the terms of the original agreement) then forward the necessary tax-forms to the endowment policy-holder.

The other alternative is to simply keep the endowment policy with the original company from which it was purchased. Usually in this case, however, a lot more hands-on work and management is required from the beneficiaries, who can delegate amongst themselves managers for the endowment policy.

Christina thinks that deciding whether to leave your visa black card endowment in the care of your offspring or a trust company can be nearly as difficult as establishing it in the first place. One should speak to an experienced insurance agent, one well-versed in the area of endowments, specifically, and measure all the options. Article Source: http://EzineArticles.com/expert/Christina_M_Thomas/1061406

Endowment Mortgages By Jame Smith

What Is An Endowment Mortgage?

An endowment mortgage, in theory, is supposed to lower your mortgage payment. Ideally, endowment mortgages are much cheaper than standard mortgage policies such as repayment mortgages. When you get an endowment mortgage, you pay only the interest on the amount borrowed. In addition to this, you pay an addition small sum into a policy that is supposed to be ever-increasing: the endowment policy. This policy is supposed to grow and grow, and at the end of the mortgage term you use this money to pay off your capital.

"The customer pays only the interest on the capital borrowed, thus saving money with respect to an ordinary repayment loan; the borrower instead makes payments to an endowment policy. The objective is that the investment made through the endowment policy will be sufficient to repay the mortgage at the end of the term and possibly create a cash surplus."
- Endowment Mortgages, Wikipedia, June 2006

Endowment mortgage is actually not a legal term. This type of mortgage policy was popular in the 1980s, especially in the UK, but natural fiscal problems and stock market lows made many of these policies practically worthless. An endowment mortgage is always going to be hit or miss. When they work, they really work well. When they don't work...then, things aren't so great.

"With an endowment mortgage, the borrower only pays the monthly interest to the lender while investing an additional monthly sum into a policy that is usually invested in equities. The theory is that this "endowment policy" should grow sufficiently, with long-term share price rises, over the course of the mortgage (usually 25 years) that the capital debt can be repaid at the end of the term."
- Q & A: Endowment Mortgages, Business Times Online, June 2006

And If Things Go Wrong With My Endowment Mortgage?
"With an endowment policy, you lay yourself open to the vagaries of the stock market and the competence of the policy manger. You must also closely monitor the performance of your policy to make sure you are contributing enough."
- Q & A: Endowment Mortgages, Business Times Online, June 2006

Let's say, for instance, that you get an endowment mortgage. This type of mortgage has been getting more and more attention recently, and some consumers are starting to think it might just be a good idea again. So you get an endowment mortgage and start paying off your interest regularly. With equal regularity, you deposit a certain amount of dollars into your endowment policy. Only, the stock market doesn't do so well. Stocks are low, the economy takes a plunge. Twenty-five years go by, and you discover that your endowment policy does not have enough in it to pay off your capital. All your interest has been paid, quite nicely, for two and a half decades, however. So, what about that capital loan that needs to be paid off?

You'd better find a way to pay it off...somehow.

"The underlying premise with endowment policies being used to repay a mortgage is that the rate of growth of the investment will exceed the rate of interest charged on the loan. Towards the end of the 1980s when endowment mortgage selling was at its peak, the anticipated growth rate for endowments policies was high (7-12% per annum). By the middle of the 1990s the change in the economy towards lower inflation made the assumptions of a few years ago looks optimistic."
- Endowment Mortgages, Wikipedia, June 2006

"When you took out your mortgage with an endowment policy, the aim was that the policy would grow in value. However, as the value of most policies is linked to the performance of the stock market there is usually no guarantee that the policy value will be sufficient to repay the mortgage at the end of the mortgage term."
- Consumer Information, FSA, June 2006

James has been writing about endowment mortgages [http://www.1mortgagesuk.co.uk] for many years and offers information on the different types of mortgages available from the web site [http://www.1mortgagesuk.co.uk] Article Source: http://EzineArticles.com/expert/Jame_Smith/34232

Selling Endowments By Gord Collins

Many homeowners in the UK during the 80's and 90's purchased endowment policies. They were sometimes called mortgage endowment policies. These policies were a form of insurance and investment savings that would cover the final cost of the home mortgage when it came due. The policy holder would make monthly payments and these payments were to cover their mortgage and provide for some savings.

Despite intentions or promises, investments can vary in end value, and these policies did not come with a guarantee that they would pay out enough to repay the mortgage at the end of the policy term. What's occurring now is the endowments have a shortfall and cannot pay the owners mortgage payments. In some cases, endowment holders are reporting shortfalls of tens of thousands of pounds.

That has resulted in a lot of stress and disappointment for the policy holders. Many in a state of frustration are surrendering them to the issuing life companies for much less than their value. Life companies include Norwich Union, London Life, Scottish Widows, Prudential Life and many others.

Selling on the Secondary Market

Finance companies have appeared who help find buyers for these policies. Endowment policies can be traded, bought or sold on the open market. A few of the endowment policy trading firms have access to extensive numbers of potential buyers who are looking for the right type of policies to purchase. That means sellers can access buyers who are more interested in their particular policy and that results in a higher price.

Left to their own devices, endowment policy holders don't have access to the right services. Without a strong base of potential buyers, they're not likely going to receive the full value of their policy.

What is a Traded Endowment Policy?

Traded endowment policies or TEPs are policies which the original policyholder has sold and that includes the assignment of all future benefits. Endowment policies are long-term and fairly rigid in design. Many policy holders realized that the endowment policies do not meet their changing financial circumstances and goals. They can borrow against the value of the policy as it is considered a viable asset by banks and finance companies. They can also unload the endowment policy by selling them.

Only about a third of all endowment policies reach full term, (e.g., 25 years). Many are or were cancelled within a few years of their conception. That leaves about a third that may reach full term.

Traded Endowment Claims

Endowment policies were sold as a savings instrument that would help to cover long term home mortgages. Many didn't and won't and that has resulted in a lot of legal or mis-selling claims and the assurance companies who issued them. Financial services firms are offering to help with the process of policy holders selling their policies. To avoid scams and ripoffs in the UK, you should not sell your policy via any firm that does not adhere to the dictates of the Financial Services Authority's Mortgage Endowment Department.

There are numerous companies brokering or selling endowments and policyholders are recommended to ensure these companies are governed by the FSA in the UK.

In the UK, the government's Financial Services Authority has set out guidelines for managing endowment policy complaints and claims. The FSA's contact address is as follows: Mortgage Endowment Department, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

Gord Collins provides marketing services for Endowment Express, a leading UK company specializing in Selling Endowments [http://www.endowmentexpress.co.uk], located in London, UK. Article Source: http://EzineArticles.com/expert/Gord_Collins/94535

Endowment Policy Buying Guide By Robert Prime

Endowment policy is a combination of life insurance and investment growth saving plans. It is a premium based package that is valid for a specified period. The premium paid by the policy holder into the endowment is invested by policy office in the stock market. On the maturity of the endowment policy the policy holder is paid the agreed amount along with bonuses. Incase the policy holder dies in mid-term then the insurance amount is paid to his beneficiary. Endowment policies are also used for repaying the mortgages but incase of endowment mortgage the monthly premium will also include the interest on the loan.

Evaluate your needs: There are various types of endowment policies namely non-profit Endowment Policy, Traditional With Profits Endowment, Low Cost Endowment Policy, Unit Linked Endowment Policy, and Traded Endowment Policy. Each has its own pros and cons as their workings and methods of growth are different from each other. It is advisable that the policy holder should evaluate his financial needs and consults a professional before buying an Endowment Policy. Educate yourself to understand the features of each type of insurance policy and then select the policy that benefits YOU personally and suits YOUR needs.

Check the reputation of the insurance company: Make sure you select the top endowment company for buying an endowment policy. The reputation and previous records should be checked thoroughly before making the final decision to buy an endowment. Find out the company's market standing. Don't trust your agent blindly and verify the facts yourself. Go for company with credible ratings given by a credible agency.

Evaluate the Front-End Loading: The set up cost, administration charges and commission payments are usually higher in the early years and are hidden within the monthly premiums. These initial costs are known as front end loading. Therefore, before you choose an endowment find out the charges and past performance of the fund.

Check the Endowment Mortgage Fee: Incase of endowment mortgage, calculate the mortgage fees carefully and try to evaluate the mortgage package before buying an endowment policy. At times, the lender charges additional front loan or processing fee, so carefully plan the investment to avoid defaulting.

Endowment Selling and Surrendering Options: A good alternative to surrendering is endowment policy selling. In this, the policy holder can sell the policy in TEP market and fetch a fair value of the policy. The main advantage here is that the policy holder usually gets much more than the surrender value offered by the insurance company.

More Endowment Policy Buying Tips

• Take help from a financial consultancy as it is a long-term investment.
• Check the amount of premium payments and your affordability.
• Carefully read and review the insurance agreement before signing for it.
• Invest only if you intend long-term investment as surrendering it in early years can prove costly.
• Do thorough study and clear out all your doubts with insurance company and the financial advisor before you strike the deal.
• Check the flexibly plan and alternate options for protection against uncertain changes in your financial needs.
• Select a reliable insurance company and choose a right policy to gain maximum benefits and tax relief.

For selling or surrendering your endowment policy, contact www.endowment-policy.co.uk. You can also seek expert advice for valuation and get free compensation assessment of your endowment policy.

Robert Prime is a professional author who has written many articles on various topics & this time writing article on Endowment Policy Buying Guide. For more details about Endowment Policy Buying Guide visit: [http://www.endowment-policy.co.uk]
Article Source: http://EzineArticles.com/expert/Robert_Prime/142260

Endowments and Endowment Shortfalls - What You Need To Know By David Miles

Endowments and endowment mortgages have received a lot of bad press in recent years, amid concerns over falling policy values and accusations of endowment miss-selling.

This article attempts to answer some of the questions and concerns you may have about the way endowments work, what's happening to them, and what you can do to ensure your mortgage is paid off at the end of the term if you have an endowment
mortgage.

What is an endowment mortgage?

There are two basic types of mortgage. The first is a repayment mortgage, where you make one monthly payment to the lender which is part interest and part repayment of the original capital.

Then there are interest-only mortgages, where your monthly payment to the lender is just the interest on the original loan and the mortgage debt remains unchanged. You then make separate payments into an investment scheme (such as an endowment), with
the idea being that at the end of the mortgage term this investment will have grown sufficiently to repay the mortgage.

An online mortgage calculator can give you an idea of the difference in payments to your lender between an interest-only mortgage and a repayment mortgage.

Interest-only endowment mortgages were very popular in the 1980s and 1990s and were often chosen in the belief that the endowment would end up being large enough to clear the mortgage and still leave a tidy sum of money left over as a bonus.

How do endowments work?

An endowment is a long-term savings policy, typically running for ten to twenty-five years. An endowment plan has what is known as a "sum assured" value. If the policyholder dies during the life of the endowment, it pays out the sum assured. In the case of endowments linked to mortgages, the sum assured is equal to the size of the mortgage. The payout in the event of the death of the policyholder is guaranteed but, if the policyholder survives, the final value of the endowment at the end of its term is not guaranteed.

Endowments can be unit linked, which means that you buy units in a fund, or they can be "with profits".

How does money grow in a with profits endowment?

There are two ways in which a with profits endowment can increase in value. Firstly, the insurance company may add a bonus to your policy each year. This is known as a reversionary bonus and is usually a percentage of the amount of profit made by the fund over the previous years.

The amount added in this way may only be a small amount. However, once added, these bonuses cannot be taken away - hence the name reversionary bonus - and will belong to you when the policy matures.

Then there is the terminal bonus. This is a separate sum of money which the insurance company can add to your endowment policy when it matures. These terminal bonuses are discretionary and may not be applied at all.

What are the advantages of with profits endowments?

The idea of a with profits endowment is to smooth out fluctuations in the stockmarket.

With a non-with profits endowment, your investment is linked 100% to the stockmarket. Therefore, there is always the possibility that the investment value could fall just at the time when you need the money.

By using with profits endowments, insurance companies get round this problem by giving you a slightly smaller percentage of any fund growth as an annual bonus and try to smooth out future annual bonus declarations.

The point of this is to try to ensure that, no matter what happens to the returns of the fund, you are guaranteed a certain minimum amount when then endowment policy matures.

Why don't you get the entire year's gains as a bonus?

On the one hand, the insurance companies and their fund managers want you to have as much security as possible - hence the reversionary bonuses which cannot be taken away at a later date.

On the other hand, they are also trying to maximise long-term growth by investing your money in stocks and shares, property, gilts, and cash. All of these involve a degree of risk.

What is the problem with endowments?

Anyone taking out an endowment policy, whether on a with profits or unit linked basis, has to be given a written illustration by the insurance company of how much the policy might be worth at maturity. When providing these illustrations, insurers have to make an assumption as to the rate of growth per annum that will apply to the money you are paying into the endowment. This assumed rate is known as the projected rate, and there is no guarantee that this rate will be met in reality.

Until a few years ago, the projections were usually based on a mid-range growth rate of 7.5% per annum. In the early 1980s, the assumed growth rates used in the illustrations were even higher. Therefore, the monthly endowment premiums were low by today's
standards, because they were set to reflect these high projected growth rates.

Interest rates and other economic factors, such as stock market growth and interest rates, are much lower now than they were in the 1980s and 1990s, so it has now been necessary to reduce projected rates of growth for people taking out a new endowment policy today. As a result, the monthly premiums for a new endowment policy today will be higher than they were in previous decades.

How does this affect existing policyholders?

Because actual growth rates have been lower than the projected 7.5% rate, an endowment policy taken out in the 1980s or 1990s may now not be worth enough at maturity to pay off the interest-only mortgage to which it is linked.

Insurance companies are therefore assessing the state of people's policies and contacting them to advise what action they should take now to avoid a potential shortfall at the end of their mortgage.

How will I be affected?

In most cases, if you took out a with-profits endowment in the mid-1980s or earlier, the fund should be sufficient at maturity to pay off the mortgage. This is because the money in your endowment policy will have benefited from the higher rates of interest and better stock market growth of the 1980s.

But, the shorter the length of time your endowment has been running, the greater the potential for a shortfall at maturity.

It is impossible to predict exactly how large this shortfall may be, as so much depends on future fund performance between now and the time when your endowment matures. Insurance companies are trying to assess the issue by looking at how much has been
accumulated in your fund so far and making more conservative estimates about future growth.

What can I do now?

There are a number of options:

1. You can increase payments into your existing endowment policy (subject to Inland Revenue rules), or take out additional endowment policy with the same insurer or a different insurer. However, you may decide you don't want to be tied into another
endowment.

2. You can ask to extend the term of your endowment policy, subject to your mortgage lender agreeing. This is probably not a good idea if it means your policy would continue beyond your retirement age.

3. You can set up an additional investment, such as an individual savings account (ISA). An ISA may be cheaper and can offer a wide range of investment choices to suit your attitude to risk.

4. You can ask your mortgage lender to switch part of your mortgage (equivalent to the projected shortfall on your endowment) to a repayment mortgage. You can get an idea of the costs of the new repayment part of your mortgage by using an online mortgage calculator.

5. You can use any other spare lump sum to pay off part of your mortgage. You will need to check first to see if this would make you liable for any early redemption penalties from your lender.

Which is the best option?

Everyone's situation is different, and everyone has their own particular preferences. If you are unsure what to do, you should take professional mortgage advice to help you review your options and come to a decision as to what to do.

Should I just cash in my endowment?

This would almost certainly be a mistake. Many endowment policies are structured such that the management charges are highest in the early years. If you surrender the policy early on, the amount you get back may well be less than the amount you have paid in up
until now.

Also, you need to bear in mind that a large proportion of the final value of a with profits endowment depends on its terminal bonus. The size of this bonus will not be known until the policy matures.

So, the best strategy is normally to keep the endowment in place. If you need to cut down on your monthly outgoings, you can leave a policy "paid up" (although you may incur penalties for doing this). This means that you do not pay any more money into the
endowment, but leave it to mature on the original date for a lower amount. If you do this, you will need to make sure you still have sufficient life cover to protect your mortgage.

It is possible to sell endowment policies on the second-hand endowment market. The amount you get will depend on the policy and how long it has left to run. Again, this is an area where you would be well-advised to talk to a professional before taking any
action.

Please note that this article is for general guidance only and does not constitute financial advice. You should seek professional advice with respect to your own specific circumstances.

------

Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

David Miles is the editor of a number of personal finance websites including UK Mortgages & Remortgages [http://www.mortgages-remortgages.net] and The Cash Clinic - a UK Personal Finance Portal [http://www.thecashclinic.com]. Article Source: http://EzineArticles.com/expert/David_Miles/2287

Top 5 Digital Cameras By Michael Remington

Digital cameras have been one of the best selling gadgets lately especially with all the technological innovations features incorporated in it such as what can be found in these top 5 digital cameras.
Nikon Coolpix S9100
The close-up capability of DSLR cam and the superior capacity of most digital cameras is fuse into one with Nikon Coolpix S9100. Boosting in full high definition 1080p video recording capability with a lightning-like fast refresh rate of 30 frames per second is Coolpix S9100. But there is more to it, richly endowed with 18x optical zoom gets you up close to your subject likened to that of a common DSLR blow up. Enjoying all of these features including other more is made easy with its user friendly control layout. If it's a blend of a little complexity and a little side of the ordinary digicams, then Nikon Coolpix is one of the most potential bet there is today.
Sony Cyber-shot DSC-HX9V
Richly endowed with features for users to uncover and discover is DSC-HX9V. It also found to provide superb video captures and still photo results brought by its stable high quality performance. Capable of full high definition video at 60p as well as superior resolution panoramic and 3D viewing is Cyber-shot DSC-HX9V. Coming at a 10 frames per second still photo shooting only entails that this digicam from the house Sony can also accommodate speed shooting session. Its capacity to shoot wide angle and blow up images to a fair size even if subject is from afar is one of its attraction which is made possible by its telephoto lens thus rendering it one of the top 5 digital cameras at present day age.
Canon PowerShot S100
From the PowerShot series now introduces a pride boosting with 1080p high definition video recording capacity and a better low ambient camera performance in the version of PowerShot S100. Yes, S100 is certainly a pride as it is also endowed with higher image stabilization performance as well as with a 12 mp camera and a powerful Digic 5 processor.
Sony Alpha NEX-7
Comes in a small design but is actually power packed with amazing features such as internal flash, a movable display which can be tilted according to convenience and comfort of user and an efficient sensor.
Canon PowerShot A3300
Power Shot A3300 is richly endowed with various shooting exposures to choose from just perfectly sufficient enough for any shooting needs. Its 720p high definition video recording and 16 mp camera along with its stable optical zoom connotes performance to boost making it to top 5 digital cameras.

Yes, these " digicams " as fondly called by many have been innovated to provide more features if not to provide higher quality than it was capable of few years ago.

Article Source: http://EzineArticles.com/?expert=Michael_Remington

Cash Crises and Over 65? What Are Your Options? By Robert H. Jones

The current global financial crises has been particularly tough on those who are already retired and living on their hard-earned savings and investments. In some western countries investments in shares have lost 20% or more of their value in the last few years - and returns look set to stay low for a while to come.
If you are living on an income stream based on financial investments you will have seen a big drop in your income. The question is what can someone who doesn't want to go back to work do about it?
In essence you have two options: live on less or sell some assets to improve your cash flow.
Some retirees may be tempted to sell the house - but that has issues as well in many parts of the world, particularly America and the UK, where property markets are still very depressed. Though it is worth bearing in mind if you have owned the property for a significant period of time and don't have a mortgage against it, and you buy soon after selling - you will have also bought at a depressed price. The price difference is what you need to focus on rather than the actual sale price of your existing property.
Others will not want to take the drastic step of selling a much-loved home. Instead they will look to selling other items and financial investments they may have.  Selling second and third cars, boats and art works can be highly profitable. In fact there is currently a mini-boom in selling gold and gold jewelery as gold is hitting high prices as once again investors see it as a safe-haven against troubled currency and stock markets.
Another item worth considering selling are insurance policies. These are often taken out and forgotten about -the original idea being that the payout will help pay funeral expenses and leave something for your heirs. The reality is that you may need that money yourself, and the good news is that there is a strong secondary marketing in buying and selling life insurance policies - particularly for those who are older and in deteriorating health.
Another option is to check if you have any of those now out of favour, endowment policies. Again, like life insurance policies, endowments were designed to provide a future lump sum - but you may be able to get a sizable amount for them now rather than waiting for their due date.

Although its no fun having a financial crises interfere with your well-earned retirement there is no reason to panic. Check out what options you have for selling endowment policy or for selling your life insurance policy.

Article Source: http://EzineArticles.com/?expert=Robert_H._Jones

The Best Selling Law of Attraction Book By Rich Thorne

W. Clement Stone, a very successful Chicago businessman of the last century, coined the phrase, "What you can conceive and believe you can achieve, with a positive mental attitude." He was selling insurance, and busy trying to motivate his sales force to sell more policies. Mr. Stone was also a successful author and his Law of Attraction book entitled, "Success Through A Positive Mental Attitude, " has been used by companies for motivational training for almost a century now.
The Law of Attraction is nothing new. It's been alive and well since time began. But its workings have been a sort of secret, ear-whispered truth to which few were privy. It's a natural law, like the Law of Gravity. It always has been, always is, and always will be. The goal is to learn to use this Law to the best advantage, to better ourselves and the world around us.
Throughout the ages, those who have had the greatest impact on history were surely tuned into this law of reality creation. Inventors and artists, business whizzes and famous statesmen who became internationally known knew (and know) the workings of this Law of the Universe. But now, what was once hidden, for only relatively few to know, has been made available to everyone who can understand and imagine. The international bestselling book called 'The Secret' lays it out for all to understand.
Millions have read the book, "The Secret, " and millions more have seen the movie or video. This is the ultimate book explaining the workings of the Law of Attraction and many have studied, learned and applied the truths contained therein to help better their lives significantly. There are literally thousands of success stories that testify to the teachings' effectiveness.
Most people have heard of 'The Law of Karma'. This is the Law of Attraction in action. You get what you give. What goes around comes around. These all express the same reality... You draw into your life the sum of your thoughts, your feelings and your expectations.
Every person alive has an inborn creative ability to mold their own existence to fulfill their personal desires. The Source of the Universe, which is responsible for giving us our very being, has also endowed us with a similar spark of creativity which only requires acknowledgment to be activated in our lives. Your current life is the distillation of your previous thoughts, feelings and expectations. If you're not happy with the way things are you can change them for the better now. You simply need to learn and live the Secret.
But don't be mistaken The Law of Attraction works whether we acknowledge it or not. It's operation is consistent, unyielding and impersonal. You get what you most think about, even if what you happen to be thinking is wrong. It doesn't care. It only acts on your emotionally-charged thoughts and desires.
A Law of Attraction book like The Secret is something to which everyone should be exposed and, since it's debut in 2006 many millions have been. It's something people want to share with their friends and family because of the incredible value imparted in the teachings. You are ultimately responsible for creating your own reality. Do it well!

I just discovered a way to Greatly Increase The Power of The Law of Attraction in Your Life. Learn my secrets and get my Free EBook Here

Article Source: http://EzineArticles.com/?expert=Rich_Thorne

Buying & Selling Property - Glossary of Terms By Rich Bendall

Bridging Loan
- a bridging loan is a short term loan taken out to bridge the gap between buying a new home and selling an existing property. The loan bridges the gap between the sale of the two homes in the housing chain and eases the completion of the purchase.Chain - the property chain refers to the sequence of sales that must take place before an individual property transaction can take place. Since most people selling their home will also be buying a new property there can be a chain of buyers and sellers each dependent on each other. If one buyer or seller drops out the whole chain may collapse.
Completion - completion in property sales refers to the point when contracts have been exchanged and ownership of the property has been legally transferred.
Conveyancing - conveyancing is the legal process that must be completed for the transfer of ownership of the property to take place. Conveyancing work is usually performed by solicitors.
Endowment Mortgage - an endowment mortgage is a type of mortgage where the property buyer makes monthly payments into a life assurance (endowment) policy. At the end of the loan period the mortgage is paid off in one lump sum.
Energy Performance Certificate (EPC) - the Energy Performance Certificate is a document showing the current energy rating of a property as well as suggested ways in which the energy rating could be improved. The EPC is a compulsory part of the Home Information Pack.
Estate Agent - a professional who acts on behalf of a person selling their home to find a buyer for the property. The estate agency service includes valuing the home, advertising and arranging viewings.
Fixed Fee Estate Agent - fixed fee estate agents a new type of property agent that offer to sell homes for a fixed fee. An alternative to traditional estate agents that set their fees at a percentage of the value of the home being sold.
Gazumping - a common practice in property sales where the seller of the home accepts one offer to buy the property but later rejects it to accept a higher offer by another buyer.
Home Information Pack (HIP) - recently made compulsory in the UK the Home Information Pack contains a series of documents relating to a property being sold. The HIP is designed to assist potential home buyers by making important property information available at an early stage.
Land Registry - the land registry is a government office that stores records of land ownership. Updates to the registry are typically performed by solicitors who register new owners of a home.
Negative Equity - a situation where the mortgage being paid on a property is of a higher amount than the actual value of the home. This means that the home owner has paid or will pay back more than what the property is worth.
Repayment Mortgage - a type of mortgage where monthly repayments cover both interest and capital so that the amount outstanding will gradually decrease until the mortgage is fully repaid at the end of the agreed term.
Stamp Duty - a government tax charged when a property is sold. The actual rate of taxation will vary according to the value of the property.
Title Deeds - the title deeds are documents showing the past and present ownership of a property.

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Book Summary - The Ivy Portfolio - How to Invest Like the Top Endowments - By Mebane Faber By Joe Mosed

Endowments have an investment outlook of forever. They know how to avoid bear markets and bubble crashes. These endowments use sophisticated investment strategies to limit the risk and maximize their gains.
Why is this important to me? There are two main points that make this book important to you.
1. We need to emulate the best. To figure out what these endowments have done on our own would result in lost time, money and opportunity. Why not emulate the best. Here is what the Yale Endowment has done. If you would have invested $100,000 in 1985, your investment would be worth $4 million today compared to the S&P at $1.5 million, 10-year Government bonds at $950,000. The same amount invested in Harvard's endowment would have gotten you $3 million. These endowments know what they are doing.
2. Get Rich Quick in stocks is not a smart way to go. Over the long haul you will probably lose money. This does not mean that you will not make money in stocks but it means you need to be educated. Think about it - we would be competing with guys like this who are the best of the best. When you see get rich quick scams on TV just think about these endowments. These guys are the best of the best and they know who how to invest. They beat the S&P by an additional 4% per year with 33% less volatility. Competing with these guys would be like advising your son to drop out of school to play basketball with the goal of becoming the next Michael Jordon.
The Ivy Portfolio is packed with a ton of information. This book is not for the faint of heart. They get into some pretty in depth stuff like mathematical algorithms, portfolio rebalancing, momentum, hedge funds, private equity, active management and passive management.
Rule one is critical. Don't lose money. Think about this if you invest $1000 dollars and lose 50% of it then you have to make a 100% gain just to get even. This is the biggest destroyer of wealth.
The Ivy Portfolio - This book gives you some ETF's and mutual funds as well as building core asset allocations that emulate the endowments. They back test with historical data to show you what you would have earned. This is powerful stuff. Please note that these endowments have investment opportunities that the little guys don't have, given their size. The Ivy Portfolio uses rebalancing and passive management to achieve results. This is doable for the little guy.
13F's - This is powerful stuff. I never heard of this until I picked up this book. These are powerful tools if you are a value investor with a long term view. You can go to SEC.GOV website and search for 13F's. This will show what the top dogs are invested in. Thus you can simple see what Warren Buffet owns and buy the same thing. You can search once per quarter and tweak your portfolio accordingly. This is an excellent strategy. Note: You need to figure out a good price to buy in at because you make your money on the buy and not the sell.
The Ivy Portfolio is a pretty intense book on investing but it profiles the two best endowments and how they do it. The good news is there are a couple of things the small investor can learn from the book. They are asset allocation, rebalancing and 13F's.
I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is emulate the best. If you want to save time and explode your results then emulate the people who have already done it. You can start by researching 13F's and seeing what Warren Buffet, Carl Icahn and George Soros invest in.

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Millions Face Mortgage Misery As Endowment Policies Fall Short By Michael Challiner

Many homeowners are being caught in the worsening endowment mortgage scandal. Figures from the insurance industry show that for the first time, the majority of endowment backed mortgage holders are being warned they will probably not be able to fully repay the mortgage they took out.
The proportion expected to fall short has soared from 46 per cent to 60 per cent in just two years, dragging in an estimated 4.5million householders into the red. Endowment policies were heavily marketed by insurance salesmen back in the 1980s with promises that the policy payouts would repay their mortgage and probably leave a tidy surplus on top.
Endowment policies were supposed to work by investing part of each monthly payment into bonds and stocks. But as we all know now, stock market falls have created a black hole in insurance backed funds estimated at around 60 billion pounds. Holders of 12 million policies - some investors have more than one - are now facing an average shortfall of 10,000 pounds below even the original home loan, never mind the promised surplus!
This means that hopes of a retirement nest egg have been shattered and some elderly homeowners could even be forced to sell their homes in order to repay their mortgage. The insurance industry expects to send out over 3 million letters to investors warning that they may almost certainly need to find more money to repay their mortgage when the time comes.
Consumer groups described this situation as 'heartbreaking' and 'scandalous' and advised people who receive warning letters to immediately seek independent advice. Possible action includes partly or fully converting the existing mortgage into a repayment mortgage or taking out an additional savings plan but with interest rates so low, the repayment mortgage option is likely to be the most popular option.
The scale of the problem has been demonstrated by cuts in endowment valuations from two of Britain's largest insurance companies. A 25-year endowment from Friends Provident taken out by a 29 year old male paying 50 pounds a month should now have a maturity value of 77,096 pounds compared to 106,188 pounds only four years ago. On a similar Scottish Life policy the forecast payout has been cut by 10,479 pounds from 94,738 pounds last year to just 84,259 now. And Standard Life has admitted that 800,000 policy holders, that's half its total, could be in trouble.
The Consumers' Association and MPs believe that the insurance industry should do far more to protect customers by taking cash out of 'orphan assets' to boost endowment policies. These orphan assets were largely built accumulated in boom years, when customers' money was making good returns.
Millions of endowment mortgages were sold on rosy promises by commission hungry salesmen with forecasts based on a booming stock market. And by 1988, 84 per cent of all home loans were backed by endowment policies. But how things have changed! As the unfolding scandal has emerged, negative publicity has largely forced most insurance companies to abandon them. Endowment mortgages now account for less than ten per cent of new mortgages.
Unsupportable promises have led to many leading insurers being fined millions of pounds by city watchdogs and ordered to pay compensation to thousands of policyholders who were duped into buying the policies on false promises.
Indeed, the Financial Services Authority has issued leaflets advising policy holders how to complain about endowment sales.

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Endowment Mortgages - Some Great Advice Everybody Should Read By Sam Osler

Now, an endowment mortgage is a loan that you can get on what is called the "interest-only" basis. This is when the borrower is planning to pay with one or more endowment policies. An endowment mortgage is mostly used in the United Kingdom by consumers and also the lender. They don't tend to think of this arrangement on a legal scale.
So, think about this, the borrower will have two agreements at his disposal that are separate from one another. The borrower is able to change the terms in either one of the agreement if he wants to. A long time back, the idea of such a policy (endowment) was thought of that extra push of security for the lender.
Back then, the lender would make sure that it was made legal to ensure that any money incurred from the endowment was to go to him instead of the borrower. Though sneaky and underhanded, this has not been done in this way for a very long time.
There are reasons why a person would choose an endowment mortgage and that is because the customer will only pay the interest on money (or capital) that was borrowed, this in turn would basically save money because it is different than the regular repayment loan.
With the repayment loan, the borrower will then have to make his payments to something called an endowment policy. The goal of this was so that the investment that was made through the endowment policy would be enough to cover the mortgage when the time came and then of course there would be the possibility of a little extra cash to play with.
Now remember, as with anything there are a few downfalls to getting or even being involved with an endowment mortgage. We will be discussing a few of these problems in the next few paragraph. Not they say one of the bad things about using an endowment policy to pay back a mortgage is that you really won't make ends meet in the long run.
Truth be told, back in the 1800's there was a big boom in selling endowment mortgages, it was going crazy, the buyers were told that they would see a high rate for the return of said policies (approximately 12% per year). Well, lo and behold by the 1990's the economy kind of fell out from under civilization and basically grounded all of these dreams into dust.

Sam Osler has been involved in the financial market for over 30 years his experience is second to none he has come across every situation thinkable and just keeps giving the best advice! http://www.officialmortgage.co.uk

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Developing Client Trust For Your Mortgage, Endowment and Income Protection Insurance Services By Chris Roche

The financial services industry has taken a few hard knocks over the years, possibly starting with the mis-selling of endowment policies, this has caused many people to be cautious when it comes to taking out a mortgage or some form of income protection insurance. Many first time buyers who took out endowments did not fully understand the implications of an interest only mortgage supported by an endowment. For many the realisation came all too late that the amount they had borrowed had not actually reduced so they still owed the lender the same amount as in day one. This of course led to numerous complaints and in many cases when the mis-selling of the endowment was proven the borrower was compensated accordingly.
So what was the real problem with endowments, as they did pay out the full amount that was owed on the mortgage should any of the policyholders die prematurely. Well the real problem was caused by using growth rates on the endowment quotation with a range of 8% to 12% widely used for the investment calculation. To expect this average to be met over a large number of years proved unrealistic and left many borrowers in the lurch. Other areas that left a bad taste in the mouth have been the investment advice given out to many of the older generation who's money went into stocks and shares. Some of these people had a low risk profile and would not have invested in this way had the old adage of shares can go down as well as up had been properly explained. Of course many of these investors have done well when they have been prepared to leave their money locked in for the medium to long term but for those requiring immediate access it proved a failure as many panicked when their investment lost money in the early stages and cashed in their shares.
There are of course other areas that have left the public distrusting financial institutions, very high bank charges for exceeding your overdraft limit, the PPI scandal, massive interest rates on credit cards and many firms being fined, censured or even closed down by the FSA. So how do you develop client trust? Well surely the first step is to know your client and fully understand their needs and aspirations. By completing a Fact Find this gives you an understanding of their current situation so you can come up with the right solutions for both the present and the future. Showing your client you have their interests at heart is easily achievable by printing off research documents that prove you have found them the most efficient and cost effective way of meeting their needs. If you concentrate on building up this relationship over time you will truly develop a bond between you and the client that will last and they will feel much more secure about you dealing with their mortgage, endowment or income protection insurance.

Written by E-Commerce Manager of Armchair Mortgages, Chris Roche. For more information on income protection, mortgage protection or life assurance plans check out our site and give us a call for a UK income protection insurance quote.

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Endowment Policy - Careful Cancellation Essential By Michael Challiner

Back in the 1980s word went around that there was a wonderful new way to pay your mortgage. In those days the process of getting and running a mortgage was almost sacrosanct, and little variation was available. A fairly common route to take was to open an account at the Building Society of your choice, and to put in as much money as you could, the intention being to prove to said Building Society that you were prudent and could be trusted with their money.
When the time for a mortgage arrived, it was best suit on for an appointment with the branch manager to convince him of your dependability, and if you were successful you were given a (typically) 25 year repayment mortgage. Inflation was your friend because you usually started off committed to a monthly repayment which made yours eyes water, but as time went by the real value of this dwindled in significance.
When you had completed your 300 monthly repayments the property was yours. It was all very straightforward until the endowment mortgage arrived. With this you paid only the interest due, with a promise of lower monthly commitment. At the end of the term a sum would be handed to you which would be sufficient to pay off the capital sum of the mortgage and leave you with enough to enjoy a brief excursion into the wild life of regular meals and even exotic holidays, which in extreme cases may even have been outside the UK!
That was the dream which was eagerly taken up by many hardworking mortgage owners and unfortunately, also by some over eager salesmen. The sum necessary to pay off your mortgage was not guaranteed, and in the majority of cases it didn't. Therein lies the formation of the mis-selling scandal; many building societies took great care to explain to their mortgage customers the modus operandi of the endowment system and the many pitfalls which could trap the unwary. Tragically many individual salesmen and some building societies omitted to adequately cover some of the less palatable facts.
This created great distress in some cases; figures produced for 2004 show that almost 7 million endowment mortgages were unlikely to provide sufficient funds to pay off the mortgage debts, leaving less than 2 million which should achieve their objective. Thus the flood tide of the 1980s which saw home owners clamouring for endowment mortgages suddenly became an ebb tide, with endowment holders looking for a way of getting back to the old system, or to one of the newer but more reliable alternatives. Great caution is necessary in this situation.
First of all you need to look carefully at your endowment mortgage to determine its value. If you are still in the early years of its operation, you will find that despite your monthly payments you have a document with very little value. This is because you have been paying the premium for the endowment agreement itself, the interest due on your mortgage loan and life insurance to cover repayment of the loan if you should die before completion.
A very important factor in an endowment is the terminal bonus. You will have received the benefit of annual bonuses along the way, but the terminal bonus is normally the very high value one; it could well provide more than half the final value of the payment which you will receive, but will be lost if you cancel. To make matters more difficult, the value of the terminal bonus is not guaranteed and will not be known until the endowment is fully paid up. It may be that you are in the situation where you will lose money whichever route you take.
If you do decide to proceed with the sale of the endowment, either because you need the money or because you are in the fortunate position where sale would be advantageous, you need to shop around. Certainly you should obtain a sale figure from the company who provided the endowment in the first place, but you are also free to go into the market place for these mortgages and see what offers you can get. It is very likely that the price which you will be offered in this way will be better than that which the original issuer is prepared to allow you.
You will find that different companies have different criteria relating to which endowments they would be interested in buying. For instance, some will not be interested if the sale value is below a certain figure, or may require the endowment to have been operational for a specific minimum period. Realistically you should seek professional help in reaching a decision; a company which has contacts within the Association of Policy Market Makers (which represents companies who deal in endowment trading) will be better placed to find you the best deal. There will be a charge for their expertise, but you should benefit from a better price and save yourself a lot of time, work and worry.
Remember that if you sell your endowment mortgage, you will fairly certainly also be cancelling your accompanying life cover and should ensure that you obtain a replacement policy, preferably before the cancellation takes effect. There is little harm in duplicating your cover for a short time, but there could be very unfortunate results from even the shortest period without cover.

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Endowment Policy: Another Forgotten Option By Michael Challiner

These complicated financial products combine life insurance and investment growth in one package. They were most commonly used as a way of repaying a mortgage and were most popular with homebuyers in the eighties and nineties.
The reason so many people bought them was because home loan firms and middlemen such as estate agents earned large commissions for selling. The charges tend to be 'front-loaded' meaning most of it is paid up front and therefore, for several years you will receive little if anything back if you have to stop paying the premiums.
In theory, these policies can grow to more than you need to repay your mortgage, giving you a bonus to spend on anything you like. In practice, this has rarely happened in recent years and of the 8.5 million endowments in 2004, 6.8 million were not expected to clear the mortgage they were originally intended to pay off.
With an endowment mortgage, you do not repay any of the capital you borrow during the term of the loan. Alternatively, the endowment policy should grow to produce a lump sum which is large enough to repay the loan in full at the end of the pre-agreed period of, normally, 25 years.
The monthly payments consist of interest on your mortgage loan and the premium for the endowment. Within the package you also pay for life insurance which will repay the loan should you die. However, there is no guarantee your endowment will pay off your mortgage.
When the time comes to making a decision on stopping an endowment and surrendering it, it is important to check your policy and make sure there is some value in doing so.
Early redemption can result in making less than you would have if it carried on for its full term. However, if you need the money, this could be our only solution.
Continuing to pay money into a poorly performing investment could be throwing away hard earned cash.
As well as surrendering it back to the company from whom it was bought from, policyholders also have the option of selling to a third party.
This can also have the added benefit of getting more for your policy than you would if it were sold back to the original issuer.
Different companies will have different requirements when it comes to them buying your endowment.
Usually they would require it to be with-profits or a with-profits whole life policy and have been running for a minimum number of years (the number of depending on the company).
Some will also require a surrender value of at least £1,500. If your policy does not meet the criteria, they will not be able to handle your sale. This would mean the only other option available is what the policy issuer will offer.
The Association of Policy Market Makers (APMM) is the industry body for firms specialising in the buying and selling of endowments. An independent financial advisor could also be helpful in comparing offers and helping you get the most for your policy.
There will be a fee for the work, but it could save you time and energy and also help you achieve the best possible price.
Don't forget how important your endowment policy is. Like with an investment, you should not suddenly cancel the policy without doing the appropriate research and taking the adequate financial advice.
If you stop payments on a policy, you may lose any life assurance cover that was offered to you. This is an important consideration for your dependents if you are then taken ill or were to die without having set up an alternative method of paying off the policy.
On average around half of the total payout on an endowment if you don't sell will come on the very last day. This is the so-called terminal bonus and it is not guaranteed. Stop paying in before then and you are likely to lose this. Instead, you will get the benefit of only the annual bonuses added to your policy.

Get great articles on life insurance [http://www.life-insurance-defender.co.uk] from Life Insurance Defender

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Endowment Policy: Another Forgotten Option By Michael Challiner

These complicated financial products combine life insurance and investment growth in one package. They were most commonly used as a way of repaying a mortgage and were most popular with homebuyers in the eighties and nineties.
The reason so many people bought them was because home loan firms and middlemen such as estate agents earned large commissions for selling. The charges tend to be 'front-loaded' meaning most of it is paid up front and therefore, for several years you will receive little if anything back if you have to stop paying the premiums.
In theory, these policies can grow to more than you need to repay your mortgage, giving you a bonus to spend on anything you like. In practice, this has rarely happened in recent years and of the 8.5 million endowments in 2004, 6.8 million were not expected to clear the mortgage they were originally intended to pay off.
With an endowment mortgage, you do not repay any of the capital you borrow during the term of the loan. Alternatively, the endowment policy should grow to produce a lump sum which is large enough to repay the loan in full at the end of the pre-agreed period of, normally, 25 years.
The monthly payments consist of interest on your mortgage loan and the premium for the endowment. Within the package you also pay for life insurance which will repay the loan should you die. However, there is no guarantee your endowment will pay off your mortgage.
When the time comes to making a decision on stopping an endowment and surrendering it, it is important to check your policy and make sure there is some value in doing so.
Early redemption can result in making less than you would have if it carried on for its full term. However, if you need the money, this could be our only solution.
Continuing to pay money into a poorly performing investment could be throwing away hard earned cash.
As well as surrendering it back to the company from whom it was bought from, policyholders also have the option of selling to a third party.
This can also have the added benefit of getting more for your policy than you would if it were sold back to the original issuer.
Different companies will have different requirements when it comes to them buying your endowment.
Usually they would require it to be with-profits or a with-profits whole life policy and have been running for a minimum number of years (the number of depending on the company).
Some will also require a surrender value of at least £1,500. If your policy does not meet the criteria, they will not be able to handle your sale. This would mean the only other option available is what the policy issuer will offer.
The Association of Policy Market Makers (APMM) is the industry body for firms specialising in the buying and selling of endowments. An independent financial advisor could also be helpful in comparing offers and helping you get the most for your policy.
There will be a fee for the work, but it could save you time and energy and also help you achieve the best possible price.
Don't forget how important your endowment policy is. Like with an investment, you should not suddenly cancel the policy without doing the appropriate research and taking the adequate financial advice.
If you stop payments on a policy, you may lose any life assurance cover that was offered to you. This is an important consideration for your dependents if you are then taken ill or were to die without having set up an alternative method of paying off the policy.
On average around half of the total payout on an endowment if you don't sell will come on the very last day. This is the so-called terminal bonus and it is not guaranteed. Stop paying in before then and you are likely to lose this. Instead, you will get the benefit of only the annual bonuses added to your policy.

Get great articles on life insurance [http://www.life-insurance-defender.co.uk] from Life Insurance Defender

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The UK Endowment Mortgage Scandal - Millions Left with Shortfalls May be Entitled to Compensation By Martin Nolan

During the 1980's and 90's a new concept of property mortgaging arrived in the UK. Endowment mortgages became extremely popular with homebuyers who wanted a secure but affordable method of repaying their mortgage debt. Most large financial organisations were happy to offer these products and they were sold by large banks, building societies and high street brokers.
The general concept of an endowment mortgage was that the customer would make regular installments into an investment fund managed by the endowment provider (the big financial organisations). The investment would eventually generate enough money to pay off the mortgage debt in full and usually the customer would be left with an extra amount or bonus at the end. In addition to this the customer would also have the benefit of life insurance for the duration of the investment period with cover provided up to the value of the endowment maturity value. The overall financial package of a combined insurance and savings product linked to lower mortgage payments, was almost too good to be true.
As a result there are currently around ten million active endowment policies in the UK.
Like most things that seem too good to be true, endowment mortgage policies have sadly proven to be extremely disappointing for the vast majority of customers. These investment products are closely linked to the worlds stock markets but with the recent 5 year global recession and sharp downturn experienced by most countries, the anticipated return on investment is proving to be far less than the endowment providers anticipated.
It is estimated that 80% of all existing endowment products will fail to meet the projected target amount and some will have considerable shortfalls. This means that potentially as many as 8 million people in the UK will fail to reap any bonuses from their plans but worst of all may completely fail to pay off their mortgage debt by the time their plan matures.
It was not long before the consumer groups began asking serious questions about the credibility of endowment policies and the regulatory body in the UK Financial Services Authority (FSA) was forced to act following complaints about widespread misselling.
It has since become apparent that millions of endowment policies were mis-sold in that the individuals or organisations conducting the sale, failed to follow the rules and notify the customer of certain key features relating to the advantages and disadvantages of the endowment products. Far too much emphasis was placed on the benefits of the products with little or no discussion about the risks involved with potentially erratic investments that were linked to the stock market. The message was that the plan simply could not fail and this was a flawed and misleading sales pitch.
The FSA have devised a scheme that allows endowment policyholders to make a formal complaint about possible misselling. The rules allow for such a complaint to be made once a "warning" letter has been received from the endowment provider indicating that the plan will more than likely fail to meet the projected target amount (this is known as a policy shortfall). If the complaint is upheld, the endowment provider or the salesman / selling organization must make an offer of compensation to the customer. The average compensation award is thought to be in the region of £5000.
Whilst it is possible for customers to complain personally, the FSA process is regrettably complex and many customers will need assistance from "professional claims handlers" in order to pursue their complaint effectively. Many endowment providers corrupt the process by using technical jargon and complex rules. They have also introduced "Time barring" arguments which have been allowed by the FSA. The rule here is that you have generally three years from the date of your first warning letter to make your complaint. This serves to confuse customers and many complaints that are pursued direct without professional assistance will simply fail. The majority of customers do not even bother to complain because of the complexities involved.
Summary:
Thanks to consumer groups and professional claims handling bodies the UK's endowment misselling scandal is gathering a head of steam and victims are now more aware of the issues.
The important aspects for customers to remember are:
o You only have a limited amount of time to complain - 3 years from the date of your first letter from the endowment provider warning about a possible shortfall.
o You must complain now to ensure that any shortfall in the projected target value of your policy is recouped. You may not recover the full shortfall amount but your compensation will go some way to bridging the gap.
o You must also seek financial advice on your mortgage situation because if a shortfall has been highlighted, the endowment plan you have is NOT going to meet your mortgage debt on maturity
If you currently have an endowment mortgage policy you must act now to ensure that you and your family's future remains secure. Be aware of the issues, be aware of the need to correct the misselling that you have been the victim of and most importantly be aware that only YOU can change the position that you now find yourself in.
For more information on making http://www.theclaimsconnection.co.uk/endowment-compensation.html">endowment compensation claims contact The Claims Connection managed by Winston Solicitors a regulated UK law firm.

This article has been written by Martin J Nolan who is a legal marketer with a firm of UK Compensation lawyers. Please visit [http://www.theclaimsconnection.co.uk/index.html] for more information on the services provided.

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With Profit Endowment Policy Holders, See Reduced Annual Bonuses By Isla Campbell

Recently, many of the UK's leading insurance companies announced reduced annual bonuses for With Profit Endowment policy holders, yet another blow for homeowners who took out endowments during the 1980s and 1990s, as they will now see increased shortfalls on their mortgage liabilities.
Some of the big names that have declared reduced annual bonuses are Scottish Widows, Friends Provident, Norwich Union and Scottish Life, while some have bucked the trend, and increased payouts - these include Standard Life, Prudential and Legal and General. But unfortunately for many endowment policy holders, payouts are down.
Annual bonus declarations vary from insurance company to insurance company because they are influenced by a number of factors, which include past investment performance, previous bonus announcements and the financial strength of the company.
For example, those who have policies with Scottish Widows, Friends Provident, Norwich Union and Scottish Life will see reduced annual bonuses in 2008 compared with the previous year. Based on a male policy holder with a 25 year endowment policy who was aged 30 when he took out the policy paying £50 per month, a Scottish Widows endowment would see a reduction of £442 between 2007 and 2008.
A Friends Provident policy would see a payout of £37,540 in 2007 reduced to £36,425 in 2008, Norwich Union's payout would decrease by £2,776 and a Scottish Life policy would decrease by more than 8 per cent - from £37,132 in 2007 to £34,196 in 2008.
Where a policyholders' endowment continues to under-perform, the insurance company should write to them, warning them of the potential shortfall. However, there are things that can be done to address this potential shortfall before it is too late.
Make a complaint - Many endowment policy holders have successfully won complaints cases against insurance companies because they say the potential risks of endowment were not explained properly to them when they took the policy out. The FSA has more information about endowment complaints.
Surrender - Because of the bad press that endowments have received over the last 10 years or so, many policyholders are trying to get rid of them, and will often just settle for the surrender value offered to them in the hope of cutting their losses and getting back cash.
Sell - There is now a fairly healthy secondhand market for endowments and those who have sold their endowment policy on to an investor have found that they got a lot more than they would have if they had settled for the surrender value - up to 45% in some cases. The reason is, potential investors see endowments as an attractive investment, due to relatively low risk investment strategy and partially guaranteed return.
But the best advice is to get advice; if you are uncertain about what to do, seek independent advice from a specialist.

Isla Campbell is an online, freelance journalist and avid traveler and pilates devotee. When not on the road she lives on the outskirts of Oban.

Article Source: http://EzineArticles.com/?expert=Isla_Campbell

Endowments - Undeserving of a Bad Rap By Christina M Thomas

Do you ever wonder how it is that supposedly non-profit organizations always seem to have money? After all, the charitable donations they receive have to go to operating expenses, as well as the salaries of the organizers, right? Well, not quite, and not usually. There are certain investment vehicles that are tailor-made to keep such institutions going.
An endowment is one such investment vehicle; indeed, it is the investment vehicle of choice for institutions - ranging from colleges, libraries, museums and many others that are not geared towards the selling of goods to maintain financial standing. For universities, their entire economic infrastructure is supported by endowment gifts from wealthy alumni, which then enjoy continuously compounding interest on the untouched (and often untouchable, by the rules of the endowment) principal. It is easy to see that a direct correlation exists between the age of an institution such as a university, and its wealth; Harvard is both the oldest and richest university for precisely these reasons - alumni have been pumping its coffers for nearly 375 years as of 2011! Harvard's premier current endowment of $27.4 billion returns interest of about 11%, or $3 billion of operating capital per year. That's enough to give each one of its twenty-one thousand students $12000 per month for the year! The other top Ivy League schools aren't terribly far behind, which exposes yet another correlation: these very old and very rich schools are rarely boot-strapped by the economy in providing their students with the most up-to-date laboratories in the world.
The endowment, then, is more often than not confined to the wealthy. With a return of well over 5%, but almost always under 11%, it takes a large sum of money to realize a substantial yearly windfall, if you will, sufficient to take care of the expenses of whatever endeavor the giver(s) wish to pursue or fund. For the private individual, it usually takes a lifetime commitment to raising the necessary capital, such that an endowment can be eventually established. Which is not to say saving up money for the establishment of an endowment isn't a good idea, as even a modest sum (by the standards of the wealthy) of, say, $200,000 can yield enough income at a respectable rate of interest to take care of the expenses associated with a home or other such residence (think property tax and/or maintenance fees). Ultimately, there is a very good reason why the most prestigious and longest-lasting institutions or entities are supported by endowments.

Christina Thomas counts insurance, endowments and other investment securities among her many interests; there just aren't many opportunities to plan ones retirement in fast-changing times. Endowments, can be a great boon for those that plan ahead well and get a good and trustworthy insurance agent.

Article Source: http://EzineArticles.com/?expert=Christina_M_Thomas