Aviva Endowments - Terminal Bonus Rate
Comments
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The guy I spoke to was helpful and explained that policies taken out later than mine were paying out more, like you said we have got the promise so every little helps, we had a 15yr endowment mature last week with Royal London and the bonus worked out at about £230 per 1000 final bonus so that was better than we had hoped.
Em.0 -
Further update after phone call - my terminal bonus rate is even worse than noxida's !! £45 per £1000 of sum assured. Won't be buying a Porsche after all!!
crookedmouth-Presumably your endowment was an ex-CGNU policy not an NU one - bonus rates appear to be a LOT better in that pool!!
Being philosophical about it - at least I got £3k for misselling and some free shares in NU!!0 -
Since there are a few people watching this one now, could someone:
1. Please explain the mortgage promise in terms tha a layman can cope with. I understand that they promise that they might top up any shortfall, but is there any way of predicting what that might means in practise? Will they make up all of the short fall or just some of it or none of it? (yeah yeah I know - it depends)
2. The reattribution. There was a lot of noise about it, but (and here's yet more evidence of my criminal lack of attention to my investments) I have no idea whether the money was ever paid out or whether it was quietly shelved. I certainly can't see any evidence of a cash windfall (and how much???) anywhere in my endowment policy records.0 -
brewerdave wrote: »Further update after phone call - my
crookedmouth-Presumably your endowment was an ex-CGNU policy not an NU one
I'll have to dig out my records - these policies go back so far I'm surprised I've managed to hang on to any of the paperwork!
Re misselling - I also remember being promised round the world cruises, but of course I have no evidence to back that up so a misselling claim was never an option.0 -
The shortfall promise is I think 6% I know mine is worth £2,800 it cannot be taken away if still promised to you when you have 3yrs left to go on the policy and they are still paying it out,if they take it away you have to be notified 3yrs prior to maturity, sorry it does take a bit of explaining hope you can understand me.
Em.0 -
crookedmouth wrote: »I'll have to dig out my records - these policies go back so far I'm surprised I've managed to hang on to any of the paperwork!
Re misselling - I also remember being promised round the world cruises, but of course I have no evidence to back that up so a misselling claim was never an option.
THE PROMISE
NU word it so that it isn't guaranteed -its dependent on them making sufficient return on their free reserves (funds left over after meeting their committments to Policy holders) - HOWEVER, it also says that if it isn't going to be applied then they will give 3 years notice ( which they haven't).
The size of the promise is based on the maximum predicted shortfall @ 6% growth from a date in 2000 - as far as I can see I qualify.(I still have the letters from July 2000 and paperwork from even further back!!)
REATTRIBUTION
I queried this at the time ..but my policy didn't qualify as it was in the "wrong" fund. If yours was a qualifying policy you should have had loads of bumph thru' the post.
MISSELLING
I didn't have a lot of evidence ...but the bank who sold me the policy rolled over after I complained that the Bank mortgage advisor hadn't explained adequately the risks of the investment vehicles and also that they had not offered me alternative repayment methods ie straight repayment mortgage.0 -
brewerdave wrote: »THE PROMISE
NU word it so that it isn't guaranteed -its dependent on them making sufficient return on their free reserves (funds left over after meeting their committments to Policy holders) - HOWEVER, it also says that if it isn't going to be applied then they will give 3 years notice ( which they haven't).
The size of the promise is based on the maximum predicted shortfall @ 6% growth from a date in 2000 - as far as I can see I qualify.(I still have the letters from July 2000 and paperwork from even further back!!).
"Based on" - yeah but what does that mean? They will pay a top up of how much? The complete shortfall?brewerdave wrote: »REATTRIBUTION
I queried this at the time ..but my policy didn't qualify as it was in the "wrong" fund. If yours was a qualifying policy you should have had loads of bumph thru' the post.
I cant remember getting anything so I just phoned them up and as luck would have it, their record of my DoB differs from the one I gave them as a security question, so the couldn't discuss the matter over the phone
They're sending me a letter though so I should find out soon enough... 0 -
Not the complete shortfall - the shortfall that they calculated that there would be in 2000 based on 6% growth from that date on the value of your fund on that date.crookedmouth wrote: »"Based on" - yeah but what does that mean? They will pay a top up of how much? The complete shortfall?
eg my predicted shortfall would have been ~ £3300 in 2000 but it was being predicted at £12900 last year!! I stand to get the £3300 as that is the maximum under the promise - so if I STILL HAD A MORTGAGE I would be short around ~ £9600 (less this years bonus and the terminal bonus) - glad its gone!!!
Think I just quoted the policy number to check re the reattribution windfall - I wasn't due anything:(0 -
If you look at your 2001 statement or your 2003 (maybe 2004) statement then it will tell you the amount of your MEP.
The Aviva MEP is fully funded to the maximum. So, they dont need to find funds to pay it. They are already there. It is unlikely to be withdrawn now as the worst has gone. Aviva tend to keep quiet about it as lots of people surrender them without knowing the MEP exists. In those cases, Aviva will profit from not having to pay out the MEP.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You are presumably talking about surrender of policies before full term?? I'd assumed that if I let my policy run til Sept.(full term) that the promise would be paid automatically - I've not seen any suggestions that I have to claim???:(If you look at your 2001 statement or your 2003 (maybe 2004) statement then it will tell you the amount of your MEP.
The Aviva MEP is fully funded to the maximum. So, they dont need to find funds to pay it. They are already there. It is unlikely to be withdrawn now as the worst has gone. Aviva tend to keep quiet about it as lots of people surrender them without knowing the MEP exists. In those cases, Aviva will profit from not having to pay out the MEP.0
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