Norwhich Union: W/ Profit

On_The_Nine

Hi,
I have a policy with norwhich union, with profit inflation protected guarantee. i've put 40k into it, and the capital is meant to be safe. Now i don't need the money right now, but i'm not sure if the capital is safe, which is all i care about, and not so much of the interest. Any advise would be great.

Lokolo

Its an investment from the look of things. Not a very good one at that though.

However as its an invesment which means your money could go up or down. The general trend in this one is up so I would think its a very very low risk fund.

However your money is protected under the Stocks and Share scheme which I don't actually know anything about, but I think its more or less the same.

Not sure if its protected upto the £50k same as cash is from tomorrow though.

p.s. try not to double post

oldwiring

It's a long term investment, so treat it as such, and don't panic because of short term sentiment.
I suggest you look at
http://www.sharingpensions.co.uk/financial_strength.htm#text1. From that I'd suggest it is one of the sounder organisations. Also is your policy one that will benefit from the special bonuses and re-attribution of capital, that is due to commence in 2009?
If it is, weight that in as well to your thinking

dunstonh

and the capital is meant to be safe

and it is.

Its an investment from the look of things. Not a very good one at that though.

Sorry Lokolo, this is a good one. Its been averaging double digit returns in for quite a few years and if invested a couple of years ago is now looking at 3 years of special bonus of 3.3% each (payable in december).

The one that was available prior to February this year has a minimum guaranteed return on encashment of RPI. I wish I had utilised more. The current version is CPI linking which isnt as good.

It is protected under the insurance FSCS protection scheme. Not investments.

Lokolo

Oh. I think I looked the wrong graph then... thats when I saw like 4% I was like hm?

http://funds.ft.com/funds/norwichunion/Insurance/NUWPIG/perf

On perform it says 4.24%... what does that mean then? Or am I looking at the wrong fund?

-edit- ^ from the looks of thing its definately not that. I have spent 20minutes trying to find it on the NU website! Its crazy. Although I am still struggling to find a performance table *hint hint*

Also, if its an investment, why is it under FCSC?

dunstonh

It gets a annual bonus whcih is 4.25%. However, it also gets a terminal bonus which accues away from the unit price. So, you need to add that on. The special bonus of 3.x% for the next 3 years (forgot if its 3.1 or 3.3% off the top of my head) will not be included in the unit price either.

minimum return after 5 years (but open ended) is inflation. Investment returns could exceed that but you get inflation linking if not. Its never going to be an investment with massive potential but guaranteed investments rarely are.

Also, if its an investment, why is it under FCSC?

FSCS protection comes in 3 varieties. Deposit, investment and insurance. The NU WP guarantee fund is inside a single premium whole of life assurance policy and is classed as insurance. That gives it 100% of first £2000 and 90% of the rest with no upper limit.

On_The_Nine

thank you for all your replys.

Lokolo

dunstonh wrote: »

It gets a annual bonus whcih is 4.25%. However, it also gets a terminal bonus which accues away from the unit price. So, you need to add that on. The special bonus of 3.x% for the next 3 years (forgot if its 3.1 or 3.3% off the top of my head) will not be included in the unit price either.
...
FSCS protection comes in 3 varieties. Deposit, investment and insurance. The NU WP guarantee fund is inside a single premium whole of life assurance policy and is classed as insurance. That gives it 100% of first £2000 and 90% of the rest with no upper limit.

Thanks still learning