If the firm you have an endowment policy with has failed, you may be eligible to claim compensation.
For endowment claims you must be able to show that the advice given resulted in you buying a product that was unsuitable for you, or you were not appropriately advised of the risks, and that you lost money as a result. We can pay compensation only for financial loss.
Examples of situations where we may be able to help include:
  • Your adviser did not properly explain that because the return from investments such as endowment policies is linked to the stock market, there was a risk that your policy could leave you with a shortfall to repay your mortgage loan.
  • Your endowment is due to pay out (or ‘mature’) after your retirement age, and it was clear at the time the advice was given that you would not be able to carry on paying premiums after you retired.
  • Your endowment is not due to mature until after your mortgage loan has finished, and this was not made clear to you at the time of the advice.
  • You already had an endowment and were advised to surrender it and take out a new one.

Compensation limits


£50,000 per person per firm.
100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm.
The above dates relate to when the firm failed, not when you received your advice.

How long will the claim process take?

6 months

FSCS aims to make a decision on your claim within 6 months of receiving your completed application and required evidence. Complex claims may take longer.