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  • FIRST POST
    • mae
    • By mae 1st Sep 17, 12:48 PM
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    mae
    Friends Life Endowment Maturing This Month
    • #1
    • 1st Sep 17, 12:48 PM
    Friends Life Endowment Maturing This Month 1st Sep 17 at 12:48 PM
    Hi

    I have an endowment maturing this month. It was called a Homebuyer Plus Plan. I have had a letter saying no further premiums required after 25th September 2017. So I assume I can cash it from that date?
    Also it says the amount will depend what date I cash it in..so when should I cash it in?

    The target amount was £26510.00
    Todays letter states projected cash in value is £18590

    Options available to me:

    -Claim the cash in value
    -Take no action and leave it in there (paying no further premiums)

    I don't understand this part:

    Final bonus will be added at the end of the premium payment term, and any final bonus will not accrue if the policy is not cashed in for at least another three years. We guarantee not to apply a Market Value Reduction if you cash in the policy within 14 days of the end of the premium payment term. After this you may be subject to MVR.


    Has anyone who has had an endowment mature got any advice or input or an expert would appreciated

    I don't know when or if to cash it in? Would it be better to leave it in?
    I am not relying on it for my mortgage so I not basing my decision on that.

    Thanks
Page 1
    • dunstonh
    • By dunstonh 1st Sep 17, 1:13 PM
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    dunstonh
    • #2
    • 1st Sep 17, 1:13 PM
    • #2
    • 1st Sep 17, 1:13 PM
    So I assume I can cash it from that date?
    No. Payments are monthly in advance. Plus you do not want to cash it in as you may suffer a surrender penalty. If the policy is going to mature in the following month, that will be without penalty.

    FL should issue a maturity form requesting how you want the maturity paid.

    Options available to me:

    -Claim the cash in value
    -Take no action and leave it in there (paying no further premiums)

    I don't understand this part:

    Final bonus will be added at the end of the premium payment term, and any final bonus will not accrue if the policy is not cashed in for at least another three years. We guarantee not to apply a Market Value Reduction if you cash in the policy within 14 days of the end of the premium payment term. After this you may be subject to MVR.
    If this is a maturity form and the option is to take the maturity value or leave it invested, the bit you dont understand only applies to leaving it invested.

    The wording seems a bit strange for a maturity form. You cant leave it in the endowment. However, they do a conversion to a single premium plan (using the maturity value). And its not a cash in value but a maturity. The wording used seems the sort that would be used when someone wants stop paying the monthly and either make it paid up (leave it there paying no more premiums) or take the surrender value (also known as cash in value). Although providers often dumb down their terminology nowadays and it could be just lazy language on their part.

    Is the plan actually maturing or have you just requested premiums stop?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • mae
    • By mae 1st Sep 17, 2:24 PM
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    mae
    • #3
    • 1st Sep 17, 2:24 PM
    • #3
    • 1st Sep 17, 2:24 PM
    Hi thank you

    Its maturing and i have an enclosed claim form wit the projected in cash in value and the clarification to say no further premiums are due.

    It does say the amount may be different on the day they sell the policy units.

    Would you advise I fill in the paperwork straight away to claim it?
    • mae
    • By mae 1st Sep 17, 2:25 PM
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    mae
    • #4
    • 1st Sep 17, 2:25 PM
    • #4
    • 1st Sep 17, 2:25 PM
    Actually it says no further premiums are due after 25th September so I asume I cash it on on that date?
    • mae
    • By mae 1st Sep 17, 2:58 PM
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    mae
    • #5
    • 1st Sep 17, 2:58 PM
    • #5
    • 1st Sep 17, 2:58 PM
    Just to ask as well are there any suggestions from anyone re starting another policy? As in I paid £40 per month into that one and as I haven relied on it for my mortgage it is a nice sum to mature for me.

    So how would you continue investing the £40 now?
    • dunstonh
    • By dunstonh 1st Sep 17, 4:11 PM
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    dunstonh
    • #6
    • 1st Sep 17, 4:11 PM
    • #6
    • 1st Sep 17, 4:11 PM
    Would you advise I fill in the paperwork straight away to claim it?
    yes

    Actually it says no further premiums are due after 25th September so I asume I cash it on on that date?
    No. premiums are paid monthly in advance. Maturity date will be a month later. They will take the maturity forms and act on them at maturity. Not before.

    So how would you continue investing the £40 now?
    pension or stocks and shares ISA are the two main wrappers for investments for most people nowadays.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • mae
    • By mae 3rd Sep 17, 4:04 PM
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    mae
    • #7
    • 3rd Sep 17, 4:04 PM
    • #7
    • 3rd Sep 17, 4:04 PM



    pension or stocks and shares ISA are the two main wrappers for investments for most people nowadays.
    Originally posted by dunstonh
    Thank you any direction you can point me in re SS ISA's? And how many years would you set it off for?
    • dunstonh
    • By dunstonh 3rd Sep 17, 4:41 PM
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    dunstonh
    • #8
    • 3rd Sep 17, 4:41 PM
    • #8
    • 3rd Sep 17, 4:41 PM
    any direction you can point me in re SS ISA's?
    That is a regulated activity and not allowed.

    And how many years would you set it off for?
    S&S ISAs are open ended. No term involved. Pensions are to a minimum age of 55.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • mae
    • By mae 14th Sep 17, 9:11 AM
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    mae
    • #9
    • 14th Sep 17, 9:11 AM
    • #9
    • 14th Sep 17, 9:11 AM
    yes



    No. premiums are paid monthly in advance. Maturity date will be a month later. They will take the maturity forms and act on them at maturity. Not before.



    pension or stocks and shares ISA are the two main wrappers for investments for most people nowadays.
    Originally posted by dunstonh
    Hi I filled in the form with the letter and signed and sent it assuming I would get the money sometime after the 25th however the money has already gone in my account? I'm worried that is classed as me surrendering it early which would then mean I haven't got as much final bonus as I would have? Confused

    Any clarification would be helpful before I ring them and make a fool of myself not knowing what I am talking about....
    • dunstonh
    • By dunstonh 14th Sep 17, 10:16 AM
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    dunstonh
    Hi I filled in the form with the letter and signed and sent it assuming I would get the money sometime after the 25th however the money has already gone in my account?
    Conventional with profits plans used to pay the money out early (by a few weeks) but unit linked and unitised only pay the money out after maturity as you are invested right up to the maturity date and will get market movements up to that day.

    What date is your maturity date?
    Is it a unit linked plan?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • mae
    • By mae 14th Sep 17, 10:51 PM
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    • 818 Thanks
    mae
    The maturity date is 25th September so when I signed the paperwork they sent me to cash it in I assumed I would get the money after that date so now Im worried I shouldn't have sent it back so soon and I may have been penalised for doing so?

    It was a Homebuyer Plus Plan FL FP With Profits Fund
    • dunstonh
    • By dunstonh 15th Sep 17, 10:32 AM
    • 89,460 Posts
    • 54,930 Thanks
    dunstonh
    The maturity date is 25th September so when I signed the paperwork they sent me to cash it in I assumed I would get the money after that date so now Im worried I shouldn't have sent it back so soon and I may have been penalised for doing so?

    It was a Homebuyer Plus Plan FL FP With Profits Fund
    Originally posted by mae
    You should contact them. You should not get the maturity until after 25th September as you would be invested right up to that day. If it is a unit linked plan, then it now sounds like a surrender. This is a possibility as your earlier posts were worded like a surrender form was being used.

    However, if it is a conventional with profits plan, then early pay out of a few weeks is quite normal. (not that there are many conventional with profits plans left nowadays).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • mae
    • By mae 15th Sep 17, 1:34 PM
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    • 818 Thanks
    mae
    Thanks I've rung them and they are looking into it and will write to me with their findings.
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