Friends Provident WP surrender values ...

martinsimpson

Now that unfriendly Friends Provident have slashed their WP terminal bonus from 40% to 17.5% it seems time to seriously consider surrendering my policy. But when? The next rate change will be early next year. Each month until then will the surrender value start creeping back up but at a slower rate than in the last 4 years where the surrender value has gone up more than 9% according to FP themselves? What to do. Any ideas?

TCA

Martin - are you aware of an exact date for the next bonus rate change?

I had no idea I had a terminal bonus of 40% as my statements only ever mention regular bonuses which have been close to zero in recent years. My monthly surrender values have consistently increased by little more than my monthly payments except on the policy anniversary when they got a bigger boost but not by much more than had it been cash in the bank. So a 15% drop in my surrender value came as somewhat of a surprise, especially as FP quote only a 7.25% drop in fund value in 6 months. So in layman's terms, can someone please advise what the make-up of the FP WP fund is, which has affected my policy value so adversely, given the miniscule rises in the past.

And in idiot speak, why so much impact all of a sudden if this is just "terminal" bonus?

And as Martin asked above, any suggestions for a course of action?

Thanks.