liverpool victoria endowment surrender

dunstonh

I cannot believe that the current value and the surrender value are the same on this plan.

If its a conventional with profits plan then you get the annual bonuses added to the basic sum assured. That is the guaranteed minimum maturity value. The terminal bonuses are not guaranteed so just note what it is for now.

The surrender value would see the basic sum assured reduced with annual bonuses possibly reduced and then terminal bonus included.

Have you got the following info so we can tell you the cost of surrender
1 - basic sum assured (there is usually the death sum assured which is the full amount and a basic sum assured which is around 1/3rd of that to which bonuses are added).
2 - amount of annual bonuses to date
3 - current terminal bonus.
4 - surrender value (i know you have that but just saying it again for completeness.

EdInvestor

downshifter98 wrote: »

for some reason, I have a feeling that the 'terminal' bonus is a changed beast nowadays - ie its not only paid at full term..

Correct.Surrender value includes accumulated terminal bonus and if there is no surrender penalty then you are getting your full entitlement. Any change in the TB over the next year is likely to be down as there is a 'delayed action" effect between market movements and their impact on With profits policy values.This is called 'smoothing" and it can work to your disadvantage if you get your timing wrong..

baby_boomer

dunstonh wrote: »

I cannot believe that the current value and the surrender value are the same on this plan.

When did you get your valuation?

If it was when the FTSE100 was much above 4,000 then there is a strong case for getting out now.

Yahoo link - 3 month historic FTSE chart

downshifter98

Crikey this endowment business is complicated.....I do very much appreciate all of your help though! (and thank goodness for it)

dunstonh - re the 4 questions

1 - £7,665 is the basic sum assured
2 - guaranteed bonus upto & including 2006 is £6465 (regular bonus was £230 for 2006).
3 - no idea except that its 19 years 2 months into a 20 year 'contract' - I can ring tomorrow to check on this.
4 - £18,908.

I also notice that the 'current value' given on the 2006 bonus notice was £15,230 - this amount appears to have been pretty steady over the past few bonus statements.

Downshifter98

downshifter98

Hi baby_boomer

The 'valuation' was supplied today and no big changes have recently applied (according to the chap at LV). Still wondering what to do but they are sending 'claim' forms just in case..

Downshifter98

baby_boomer

baby_boomer wrote: »

My gut feeling about LV a while back was that they liked to hang onto their money and perhaps invoked MVRs as protection or paid low sums for early surrenders more than they needed to. But new rules should now prevent this.

Which seems to fit your story since the market was climbing from 2003-06

downshifter98 wrote: »

I also notice that the 'current value' given on the 2006 bonus notice was £15,230 - this amount appears to have been pretty steady over the past few bonus statements.

And now they have increased it, even though markets have actually fallen.

WP - Don't you just love it? How will they treat you in the last year? How can you know? Has LivVic behaved to date in a way that inspires confidence?

I'd get out now if I were you, but wait for dunstonh's confirmation.