From: "Nebulous" 
Newsgroups: uk.finance uk.legal
Subject: Re: Endowments The Forgotton Scandal (how big Insurance Companies Unloaded their responsibilties)
Date: Mon, 17 Jul 2006 19:50:07 +0100


"legal eagle"  wrote in message 
news:44bba63d$0$22697$88260bb3@free.teranews.com...
> "Bob_Cratchit"  wrote:
>
>>
>>GB wrote:
>>> Half the commission rate but on say 20 times the premium = 10 times as 
>>> much
>>> commission for selling an endowment.
>>>
>>> If you used the same half-truths in selling life assurance, no wonder 
>>> you
>>> are in trouble.
>>
>>That may be true in the inflated house price South East, but it
>>certainly was not true in the rest of the UK and certainly not 12 years
>>ago.
>
> Er, wrong. Life assurance was always fixed term, usually 10 years and
> fairly low premium. Endowments were usually a 25 year term with a much
> higher premium even in the freezing cold north. Endowments always
> attracted much higher commision, even in the north in the 80's.
>
Err no life assurance wasn't. A common one was a 25 years decreasing term 
assurance to roughly follow the amount you would be due on a repayment 
mortgage. Ten years would be stupid to cover a 25 year mortgage as your 
circumstances might change and you could find it difficult to get more after 
10 years.

Neb