Norwich Union

aanderson67

I have a with profits endowment policy from norwich union which i took out ten yrs ago. since then i have sold my property but kept the policy running in the view that it would be a way of saving. norwich union have now anounced a reattribution which i thought maybe a good idea to accept, recent news has changed my mind. they have anounced that they only intend to offer customers (1 million of us), the mim of £400 and the average £1000 to buy out our share of 90% of any future interest. this strikes me as grossly unfair. i have understood for a while now that my policy wouldnt be the £43,000 that it was ment to be but to take a £26,000 loss and the fact that i wont even get back what i will have paid in at the end of the term ,just feels like a con to me! Is there anyone else out there who is involved in this reattribution? should i accept the cash? should i try to sell my policy? HELP!:(

dunstonh

i wont even get back what i will have paid in at the end of the term

That is very unusual with NU plans. Are you sure?

Most NU plans are not really that far off target when you take into account the actual bonuses being paid (not the projection figures), special bonus due and mortgage promise value.

englisho

I also have an endowment (not a with profits one) with the NU, and just yesterday received another of the dreaded red warnings.

I was luckily in a position to pay off my mortgage and just kept the endowment running as a small nest egg. It has another 10 years to run.

The one important piece of information I would love to know, is just how my policy has performed so far. Although this wouldnt tell me what the final value will be, it would give me a better idea on whether it's worth keeping it running or putting the money in a savings account.

EdInvestor

Post the following info about the endowments so we can try to assess them

Guaranteed sum assured
declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

dunstonh

and just yesterday received another of the dreaded red warnings.

NU class all their endowments as red unless the mid projection shows a suprlus. even if it was £1 off they class it as red. This was done to allow them to time bar the remaining endowments (along with using lower projection rates in the past). It has nothing to do with potential but using the system to their advantage.

aanderson67

i have to wait till i receive my offer i know but still worrying all the same . their web site is open to all who wish to know more. they are rewarding special bonuses over the next 3 yrs of 3.6% of the value of my investment but wheather that inceases my end guaranteeded amount i dont know. end min amount is £16,523.00. will have to dig the rest of the info out .

aanderson67

guarenteed sum assured £16,523. Declared bonuses £2,357.20. monthly prenium £64.98. Maturity date 26.06.2023. Maturity forcasts 4.00% £32,400.00 ,6.00% £40,500.00 , 8.00% £50,800.00. Not sure about the surrender value but was told in a recent phone call that the policy was worth £7346.30, less than what has been paid in.

dunstonh

Not sure about the surrender value but was told in a recent phone call that the policy was worth £7346.30, less than what has been paid in.

Surrender values include a surrender penalty so you would expect that to be lower until later into the policy life.

NU have shown to be capable of getting 8% p.a. and will probably achieve that over the next 3 years at least (in part due to special bonus of 3.6% p.a. being added each december for the next 3 years - assuming yours is a qualifying plan).

EdInvestor

Please update the S/V

Meanwhile you could get sale quotes here: https://www.apmm.org

aanderson67

been informed today that the S/V would be around £8300.40 . sounds very tempting to take the cash and run. need a deposit for a house

EdInvestor

aanderson67 wrote: »

Maturity forcasts 4.00% £32,400.00 ,6.00% £40,500.00 , 8.00% £50,800.00.

If you cashed it in and invested the money in cash @5% average to maturity also paying in the premiums, you would have a guaranteed return of 34,539.

If you put the money in risk based funds in a tax free ISA also paying in the premoiums to maturity and getting an average return of 7% you would end up with 43,236.

Not a bad endowment, I've seen far worse.:)

Find out how much the TEP traders will offer, if there's a big premium on the S/V you'll know you should hold onto it.