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  • FIRST POST
    Victor_Delta
    Endowment Maturity Value
    • #1
    • 27th Feb 07, 9:04 PM
    Endowment Maturity Value 27th Feb 07 at 9:04 PM
    I wonder if anyone can throw any light on the following please - I'm inclined to say "I don't believe it"!

    My oldest endowment policy, which was started with the Equitable in 1975, matures in 2 months time. For the last few years I have received 'green' (as opposed to amber and red) letters about it - the most recent being sent at the end of September 2006.

    It includes the wording: "We are pleased to confirm that your policy is currently on track to repay the target amount of 15,217... and what your policy may provide at maturity on 5 May 2007 - projected final amount assuming investments grow at 3% 21,900, 4% 22,100, 5% 22,300. I was not unhappy with this believing that even if there was no growth in investments between September and May, I would receive in the order of 21,300.

    Imagine my surprise to receive a letter from the Equitable today claiming that the guaranteed value of the policy is only 12,383 and indicating that this is approximately what I will receive in May.

    Thinking there must have been some sort of miscalculation, I phoned them today but was assured this is correct. When I asked about the figures in the recent 'green' letter I was basically told that these letter are just a regulatory requirement and provide no real indication of maturity value. I found this hard to accept but the operator even checked she was correct with her boss who confirmed the situation saying the value of units can go down as well as up. There was no mention of exit penalties or any other logical explanation.

    Well of course I am aware that the Equitable has had financial problems and that units can go down as well as up, but had assumed, given the very clear wording, that these issues had been factored into the calculations given in the 'green' letters over the years - especially the last one. And after 32 years, I can't believe the value has dropped so much just in the last few months.

    I don't know if others have had the same experience but can anyone explain what is going on here. Are the figures given in these regulatory letters really so meaningless?

    Despite the operator's assurances, I still can't help thinking there must be some mistake here surely?

    V
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