Adrian and Adam put questions to Patrick

The major reason why endowment policies have underperformed is not because they are highly charged inflexible contracts, though this clearly does not help.

When an endowment policy is set up it usually has a target amount. This is the amount that the policy will hopefully be worth at the end of the investment term. This amount is usually the same as a mortgage that needs repaying.

When setting up policies, an assumption needs to be made of how much the underlying investment fund will grow. This assumption determines the monthly premium on the policy.

In the past, many endowment policies have been set up with unrealistic assumptions.

For example, if a policy is set up and the underlying fund needs to grow by, say, 8% a year in order to meet the target amount at maturity and the fund does not achieve this, then there will be a shortfall.

This is exactly what has happened. The underlying funds, usually linked to the stock markets, have not performed as required.

The target growth rates have not been hit and as a result many people are facing endowment shortfalls.

Jamie Bishop of London asks how he should complain about the possible mis-selling of an endowment.

You should contact the company that sold you the endowment and provide them with details of your complaint. It is usually best to do this in writing.

You should give the company eight weeks to try to solve the complaint. The company should send you a letter setting out its financial decision and telling you how to contact the Financial Ombudsman Service if you are unhappy with the decision.

You have six months from the date of the company�s final letter to take your complaint to the Ombudsman.

The Ombudsman�s role is to be impartial and investigate the dispute between you and the company. The Ombudsman has the power to make a decision that the company must accept and can order the company to pay you up to �100,000 to put matters right.

You can choose whether or not to accept the Ombudsman�s decision. If you do accept, the decision is binding on the company; if you do not you can take your case to court if you wish.

Dave Campbell of County Durham says he's had three endowments for the past 13 years and they are all roughly �2,000 down on estimates.

"Isn't it about time the financial institutions took some responsibility and cut their management charges by, say, 50%?" he asks.

It would certainly be a very good customer relations exercise if endowment providers cut their charges in order to provide at least a token benefit to investors.

In reality, though, this is not too likely.

To start with, most of the charges on an endowment policy are taken in the early years and so will have already been paid. Charges are structured in this way to allow initial commission to be paid to advisers.

From a pure business point of view, most product providers will probably ask why they should cut their costs, especially at a time when these companies are not having the best of times financially.

Frederick Watson of Worcester says: "I have received notice from Royal Sun Alliance that my low-cost endowment policy which matures in 2013 is, now forecast to pay �26,000, instead of of �54,000.

"I have inherited some money so I no longer really need the endowment. The current surrender value is �9,000. I propose to suspend payments and await the maturity date. No-one will buy it from me so what are the other alternatives?"

It is no great surprise that you cannot sell your policy. Royal & Sun Alliance have pulled out of the with-profits market, have slashed their bonus rates and also the amount of equities that they hold in their with-profits fund - not the ideal combination for a potential buyer.

With limited potential in this fund you need to ask whether you want your money tied up in it for the next 10 years.

I would suggest obtaining an illustration from Royal & Sun Alliance projecting what your policy�s maturity value will be in 2013.

I would suggest using the lowest growth rate of 4% a year on the illustration, though even this may prove to be a little ambitious.

With this information you may be in a clearer position to decide whether it is worth retaining the endowment or taking the money and investing elsewhere.

Peter Howse asks: "If I want to cash in or sell my endowment policy before its maturity date, would I be liable for taxation?

"Lots of companies say you will gain if you sell it. The Revenue say it will be placed on top of my yearly income and be liable for tax, but if I let it run until maturity then no tax will be involved. Is this right?"

Your endowment policy will be set up on a qualifying basis, which means that if you continue contributions until maturity there will be no tax liability.

If you surrender or sell the policy within the first 10 years, or three-quarters of the term if sooner, this causes a chargeable event and gains could be subject to income tax.

However, tax is payable only if the surrender value exceeds the total premiums you have paid and then only if you are a higher rate taxpayer or the top-sliced gain pushes you into higher rates of tax.

Of course, if you cash in an endowment policy in the early years, it is quite unlikely that there will be a gain and so no income tax will be payable anyway.

If you are considering surrendering your endowment, it is always worth checking to see if you can sell the policy for more than the surrender value.

Gordon MacBride from Glasgow asks which websites will give him advice on what to do when considering a claim of mis-selling.

I would recommend two websites. The first is the site of the Financial Services Authority, the industry regulator. You can also click here for an endowment mortgage complaints factsheet.

The second site is one set up by the Consumers Association and this is called www.endowmentaction.co.uk. This website has been created to help people who have been mis-sold an endowment mortgage to obtain compensation.

So in effect, the first website highlights whether you have a valid complaint, and the second details how to take that complaint forward.

John Smith took out an endowment more than 12 years ago. He's paid off the mortgage already, but is still paying �100 a month into the endowment - its estimated value is still less than the total amount paid into the policy, and its performance continues to wane.

He has no dependents, but does have life cover and other investments. What should he do?

This is a question that many people ask and I am afraid there is usually not a simple and straightforward answer.

Now that your mortgage is paid off, you are effectively using this policy as an investment savings plan. You need to work out whether this is a good value plan from where it stands today or whether you should look toward other alternatives.

You have four choices with regard to your policy: