Royal Life / Sun Alliance Endowment Shortfall - Keep or Sell ?

Kellm9 · 7 April 2006 at 6:36PM

EdInvestor wrote:

Hi Kellm

Have you got these figures in writing?

Hi Edinvestor,

Thanks for replying.

Yes I do have both sets of figures in writing (both policies Nov and now). They have the usual "this value is not guaranteed" and will be recalculated in the event of a claim (surrender). But the figures are as earlier.

Cheers
Kellm9

Kellm9 · 8 April 2006 at 11:39AM

If I want to surrender my policies the figures would be recalculated. Is there any way I can make sure I get the amount or close to the amount in the recent letter I recieved.

I would not like to surrender if, they recalculate £2k - £3k less than the recent figures they gave me. For example can I specify in my letter that I would like to surrender as long as the amount is no less than £x. Or is there a better way to protect against a low surrender value ?

Edinvest, any reason you ask if I have the figures in writing ?

Regards
Kellm9

EdInvestor · 8 April 2006 at 6:28PM

Edinvest, any reason you ask if I have the figures in writing ?

I ask becausae it's very unlikely they would pay you a surrender value higher than the guaranteed value with several years to go.

Either you - or they - are perhaps making a mistake?Suggest you try to confirm.Of couse if they really are offering you a surrender value that high in writing, you should bite their hand off immediately

I

Kellm9 · 9 April 2006 at 2:28PM

EdInvestor wrote:

I ask becausae it's very unlikely they would pay you a surrender value higher than the guaranteed value with several years to go.

Either you - or they - are perhaps making a mistake?Suggest you try to confirm.Of couse if they really are offering you a surrender value that high in writing, you should bite their hand off immediately
I

The figures I have posted on page 1 are from the policy document and annual bonus statements. The recent surrender values are via phone call and confirmed by letter. Do you think the new amount could be a mistake ? It seems strange that the same mistake would be on both policies. How could I confirm the amounts ?

The recent letter I recieved has the higher surrender values. It does say that they would be recalculated in the event of surrendering. Is it possible that if I surrender they could give me £2k - £3k less than the figures in the recent letter ? Or is the formula used to calculate the amount pretty standard and well regulated ? If I can confirm the higher surrender values I do intend to bite their hand off. :j

pmg7754 · 29 September 2008 at 2:51PM

cant seem too sell my endowment:mad:

EdInvestor · 29 September 2008 at 6:19PM

pmg7754 wrote: »

cant seem too sell my endowment:mad:

Which company is it with?Is it conventional With profits or unitised WP/Unit-linked?

Braders0121 · 27 April 2009 at 6:35PM

Hi

I Have not used this site before, so not sure if I am posting my query in the right place, but any help would be greatly appreciated.

I have been reading the threads regarding RSA/Phoenix endowment policies, and facing a similar situation myself.

My Homebuyers Endowment policy was originally taken out with Royal Life in 1995 (taken over by Phoenix), details as follows;
Maturity date: 12.05.2014
Basic Sum !!!: £16,608 with profits
Guaranteed min death benefit: £32,500
Monthly premium : £89.25 per month

Bonuses are added to this policy as follows:
Bonus: £3,019.82 on maturity
Terminal Bonus: 8% on maturity (based on the total of both basic sum assured plus above bonus)

Have requested a settlement figure from Phoenix - £14,754.00 as at 24/04/09.

The target amount of this policy should have reached £32,500, however recent statement 20/02/09 forecasts projected amount as £21,800 therefore a shortfall of £10,700 (based on 3.75% growth each year).

With only five years left to run I don't believe this policy will recover the £24,000 needed to repay the capital element of my mortgage and think I would be best to settle now.

Other option is whether I could sell to a third party, is there still a market for this kind of policy.

Please help!

coolchrisblue · 2 May 2009 at 8:38PM

we have been paying £35.32 on Phoenix endowment for 25 years we have now had final settlement which was just over £15000 and this should have paid out over £23000. The final bonus was just over £400. I doubt that you will recover the amount to repay as our forecast just 6 months ago was a shortfall of around £5000 where as now at maturity it is almost £8000 short. I would cut losses now and save money elsewhere

Royal Life / Sun Alliance Endowment Shortfall - Keep or Sell ?

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