Phoenix Life & Pensions - Endowment Policies

Big_Dave_8 · 8 April 2006 at 10:22AM

EdInvestor wrote:

Thanks David

Are you sure that you've got the guaranteed sum assured/declared bonus figures correct?They appear to be higher than the projected maturity values which is pretty unlikely.

Hi Ed

Nope not really that sure .... I'll quote the phrases from the last statement 2004
Policy 1
Guaranteed Min Death Benefit = £16k
Maturity Date = 17/02/2020
Amount on which basic bonus is calculated = £7260
Bonus Earned To 31.12.2003 = £1213.63
New Bonus Added This Year = £21.18
Total Bonus Earned To 31.12.2004 = £1234.81

Policy 2
Guaranteed Min Death Benefit = £16k
Maturity Date = 17/02/2020
Amount on which basic bonus is calculated = £7260
Bonus Earned To 31.12.2003 = £1213.63
New Bonus Added This Year = £21.18
Total Bonus Earned To 31.12.2004 = £1234.81

Policy 3
Guaranteed Min Death Benefit = £30k
Maturity Date = 27/03/2020
Amount on which basic bonus is calculated = £15123
Bonus Earned To 31.12.2003 = £997.61
New Bonus Added This Year = £40.30
Total Bonus Earned To 31.12.2004 = £1037.91

Any help greatly appreciated

Rate of annual bonus was declared @ 0.25%

Regards
Dave

EdInvestor · 8 April 2006 at 11:34AM

Big_Dave wrote:

Hi Ed

Policy 1
Amount on which basic bonus is calculated = £7260
Total Bonus Earned To 31.12.2004 = £1234.81

Policy 2
Amount on which basic bonus is calculated = £7260
Total Bonus Earned To 31.12.2004 = £1234.81

Policy 3
Amount on which basic bonus is calculated = £15123
Total Bonus Earned To 31.12.2004 = £1037.91

Thanks Dave,

The guaranteed value is made up the two figures I've highlighted above, so it's 8,494 for the two smaller ones and 16,160 for the bigger one.These amounts are what you will deinitiely get at maturity, and it's unlikely you'll get much more in this zombie fund

.

So let's compare what would happen if you cashed in these policies and put them on deposit @4% until maturity, also paying in the premiums.

The smaller policies would get to 13,409
The larger policy would get to 25,251.

These figures are not only much higher than the guaranteed value, they are also higher than the highest projected value.

So you'd be well ahead if you cash in, with an even higher risk-free return likely if you use the money to reduce the mortgage, depending on what interest rate you're paying on that. If you need to replace the life cover be sure to do it before surrendering the endowments.

Big_Dave_8 · 8 April 2006 at 12:59PM

EdInvestor wrote:

Thanks Dave,

So you'd be well ahead if you cash in, with an even higher risk-free return likely if you use the money to reduce the mortgage, depending on what interest rate you're paying on that. If you need to replace the life cover be sure to do it before surrendering the endowments.

Hi Ed

Thanks for the analysis of the situation I really appreciate it

I've got an offset via the woolwich at 5.35% so the savings will be higher - looks like I'll be better off getting shot of the endowment

I've heard it is possible to trade with profits endowments. Where am I likely to get the best price any ideas?

Regards
David

ReportInvestor · 8 April 2006 at 1:47PM

Traded endowment policies are largely traded because of the potential of & variation on the terminal bonus.

I can't imagine anyone trades Phoenix policies because a TB is unlikely.

weaver · 8 April 2006 at 2:55PM

I cashed in my Phoenix policy and got the money 2 weeks ago. No one would buy them, so I had no option but to go with phoenix.

I lost £700 by having to do this (the best quote until they realised they were phoenix )

I sent them a utility bill and bank details as I had lost the original policies.

Ive put money into ISAs as my mortgage deal ends in october, I will re-negotiate a better deal and possibly pay off the money or leave in the ISAs which ever is the best deal at the time.

I feel more settled by doing this, Im no longer dreading the letter saying the shortfall has got bigger each year, at least Im getting some interest on my money and will make further decisions in october.

Hope this helps

EdInvestor · 8 April 2006 at 6:22PM

I'm afraid no chance of selling Royal policies, you'll have to surrender.

Big_Dave_8 · 9 April 2006 at 9:55AM

EdInvestor wrote:

I'm afraid no chance of selling Royal policies, you'll have to surrender.

Oh well doesn't hurt to ask ....

Well it looks like I'm going to surrender these useless things and hold the cash in my offset account account.

How niave of me to expect an investment company to attempt to get some performance out of the money I gave them in order to get a return :huh: .... in the end it's all about the fees they could charge for the endowment :mad: ... ok I know ... businesses are run for the shareholders benefit not the customers !! Sorry for the rant

Thank you for all your help

Regards
David

Big_Dave_8 · 9 April 2006 at 10:07AM

weaver wrote:

I cashed in my Phoenix policy and got the money 2 weeks ago. No one would buy them, so I had no option but to go with phoenix.

Looks like I'm going to be following you

weaver wrote:

I sent them a utility bill and bank details as I had lost the original policies.

I'm not sure if I still have the original policies either ... I'd better right them a letter telling them what a useless shower they are and surrender the policy.

weaver wrote:

Ive put money into ISAs as my mortgage deal ends in october, I will re-negotiate a better deal and possibly pay off the money or leave in the ISAs which ever is the best deal at the time.

I'm thinking of putting some into the Offset and some into an Maxi ISA fund

weaver wrote:

I feel more settled by doing this, Im no longer dreading the letter saying the shortfall has got bigger each year, at least Im getting some interest on my money and will make further decisions in october.

Hope this helps

I know the feeling, the last letter (as described earlier) from Phoenix sent my heart rate up :mad: , it took me ages to calm down :think: enough hence the posting on this chat forum ... didn't realise I felt such high levels of anger towards the Endowent Companies until I got the latest letter in .... and thought "They're taking the p*ss out of me now!!!!"

So all round I think your right we're better off without the stress and strain that each of these letters causes us :beer:

Ta
David

eviegem · 23 April 2008 at 8:23AM

I too have a Phoenix endowment policy and you recently gave this advice to another poor soul!!!!

My endowment expires 2010 it is for £30,000. These are the details:
Basic guaranteed sum assured £9360
Previous bonuses £9280.95
This year's bonus (the princely sum of £46.60!!!)
Total plan benefits £9327.55

1. Does this mean the total value at present is approx £18,600? (obviously we only get that sum towards the £30,000 if we see it throught to the bitter end)?

2. Would you give us the same advice and how do we go about it?

Ta a lot!!!

:j

EdInvestor wrote: »

Thanks Dave,

The guaranteed value is made up the two figures I've highlighted above, so it's 8,494 for the two smaller ones and 16,160 for the bigger one.These amounts are what you will deinitiely get at maturity, and it's unlikely you'll get much more in this zombie fund .

So let's compare what would happen if you cashed in these policies and put them on deposit @4% until maturity, also paying in the premiums.

The smaller policies would get to 13,409
The larger policy would get to 25,251.

These figures are not only much higher than the guaranteed value, they are also higher than the highest projected value.

So you'd be well ahead if you cash in, with an even higher risk-free return likely if you use the money to reduce the mortgage, depending on what interest rate you're paying on that. If you need to replace the life cover be sure to do it before surrendering the endowments.

realyhackedoff · 17 June 2008 at 7:22PM

eviegem wrote: »

I too have a Phoenix endowment policy and you recently gave this advice to another poor soul!!!!

My endowment expires 2010 it is for £30,000. These are the details:
Basic guaranteed sum assured £9360
Previous bonuses £9280.95
This year's bonus (the princely sum of £46.60!!!)
Total plan benefits £9327.55

1. Does this mean the total value at present is approx £18,600? (obviously we only get that sum towards the £30,000 if we see it throught to the bitter end)?

2. Would you give us the same advice and how do we go about it?

Ta a lot!!!

:j

I also have a Pheonix life homeplan assurance policy. It is due to mature in 2012. I to have been told that my bonus last year amounted to £45.16. I have already invested £16400 into this plan and it looks like all I will achieve is around £18500 if the current performance continues to maturity.

How can an investment company say that they only managed to achieve this poltry amount from my £16400 investment so far.

My annual statement sais that "the total payable at maturity will be the Plan benefits plus any final bonus applied at the time". Could someone tell me what the likelyhood is of any final bonus being paid and if so what this is based on?

Phoenix Life & Pensions - Endowment Policies

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