Pearl Saverplan

magster

Hi there, has anyone any ideas how to get out of this insurance plan. I have a 10 year Pearl Saverplan due out in October 2007. For the past three years the amount accrued has stayed the same as no bonuses have been added and there is no intention at this time to add anymore. As the amount is frozen and I still pay in £30. a month can I freeze the payments as cannot see any good reason to continue to pay for another 22 months when the amount I will get out will be only £273. more than I have paid in. Is this now the norm with these endowment plans ? Magster

dunstonh

Is this now the norm with these endowment plans ?

Its the norm with the Pearl Saverplan although not with some of their other plans. This type of plan become very much obsolete with the introduction with PEPs although a number of tied company firms continued to operate them until the introduction of ISAs.

Last plan of this type I sold was around 1995. However, it is still possible to buy them today, albeit not with advice. They are usually sold via adverts boasting no salesman will call. Thats because no financial advisor could justify this rubbish.

You can make the plan paid up, where you cease to make contributions but dont encash it and face surrender penalties. However, the sum assured that the bonuses are added to is based on you paying premiums until the end. If you dont continue those premiums you may find you lose more than you bargained for. Without full details of the plan, it would be hard to give any indication of what is best for you.

ReportInvestor

Only your own IFA can properly advise you :j . Why are you bothering to ask on this forum :rolleyes: ?

dunstonh

With one product exception for about 6 months, Pearl products were not available to IFAs. Pearl had a tied salesforce that closed around this time 3 years ago.

That being said, RI is correct in saying that an IFA could advise you once the product details have been obtained.

Irish_Tempest

Hi folks,

Just a quick question to the wise out there with a knowledge of this 'Saverplan' disaster. My Mum recomended I start this way back in 99 when I joined the Military. Like most folk in the forces I gave saving policies a stern ignoring thinking i was safely tucking away 100 per month. After 'maturing' a bit I have started examining this policy... and yes its awful. I'm doing the 'should I or shouldn't I jump?' scenario. I'm nearly 10 years in with 4 to run an I am not sure if there is even a snowballs chance of getting a final bonus from this crowd.

Does anyone out there have any experience of getting the terminal ... ahem bonus... or do you think I should pull the 'yellow and black handle now?'

I would appreciate any and all replies.

Steve