Information for people who have been mis-sold endowments and are seeking compensation

Endowment Glossary

Definition: "Red Letter"

A Red Letter is…

Warning letter to endowment holder that their policy will not reach the target amount even if it grows at 6% per annum for the remaining term.

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More endowment related definitions:

• Advance
• Agent
• Amber Letter
• Assignment
• Cancellation Notice
• Churning
• Demutualization
• Early Repayment Charge (ERC)
• Endowment Policy
• FOS
• FSA
• Further Advance
• Green Letter
• Interest Only Mortgage
• Life Assurance
• Maturity
• Negative Equity
• Red Letter
• Remortgage
• Repayment Mortgage
• Reversionary Bonus
• RPB

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