Well, there was just one pot in B&B, not partitioned into separate pots for interest and capital. If Tom/Sue had paid the EP for 25 years, the proceeds would have paid a large sum into the pot, hopefully paying off the £43k or whatever. They stopped very early so the proceeds were only £178.Normal Wisdom wrote:The proceeds of the surrendered EP was paid into the mortgage interest account so I think that means it was netted off against the loan interest and not the capital.
As the matured policy would repay capital, I think it's fair to say the surrendered policy also repaid some capital.
But it's a trivial point and I'm being too picky. Your essential point, that Tom didn't repay the capital, is correct.