is my endowments protected?

alanhunt1

I have a few endowments in standard life which i intend to let mature. What i want to know is am i protected in the same way (as my savings are in the bank) if the company goes under?

dunstonh

What i want to know is am i protected in the same way (as my savings are in the bank) if the company goes under?

Not quite. Deposits are protected under the FSCS deposit protection scheme. Life assurance contracts are protected under the FSCS insurance protection scheme. That is 100% of first £2000 and 90% of the rest with no upper limit.

EdInvestor

dunstonh wrote: »

Life assurance contracts are protected under the FSCS insurance protection scheme. That is 100% of first £2000 and 90% of the rest with no upper limit.

In the case of a With-profits endowment or pension, does the protection apply to the entire policy value (incl terminal bonus) or just the guaranteed value? It's the latter AFAIK.

dunstonh

EdInvestor wrote: »

In the case of a With-profits endowment or pension, does the protection apply to the entire policy value (incl terminal bonus) or just the guaranteed value? It's the latter AFAIK.

A company that was going to fail would almost certainly have no terminal bonus at that point. The WP fund is one of the biggest hits on the solvency of an insurer. So, when the provider is weak, the returns are usually weak and the terminal bonus lower. Unitised with profits fund being the exception. So by default I wouldnt expect a TB to be included.