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Are they allowed to do this?
mummybunnymoneysaver
Posts: 12 Forumite
I've decided to surrender a policy that I've had for 10 years as I really need the money. I sent off the policy and all the necessary paperwork with it 2 weeks go. I'd not heard off them so I rang up to find out how long it would take and they informed me that it will cost me £2,000 to surrender my policy! :eek: (which'll be taken out of any profit that policy's made) Apparently, they informed all of there policy holders about this via the national newspapers and they are totally within their rights to do this!
Would anybody know if this is correct? It seems pretty underhand to me. And REALLY expensive!
Thanks in advance folks
mummybunny xx
Would anybody know if this is correct? It seems pretty underhand to me. And REALLY expensive!
Thanks in advance folks
mummybunny xx So many contradictions to do with the benefit system....my child is now 16 so isn't a child anymore, or so say tax credits...yet they can't vote coz, according to the government they're still a child! 
Member of: Lightspeed panel: £50 points/juicy brain £20 points/Ipos £40 points/ Greasypalm £50 credited :T Mummybunnymoneysaver :hello:
Member of: Lightspeed panel: £50 points/juicy brain £20 points/Ipos £40 points/ Greasypalm £50 credited :T Mummybunnymoneysaver :hello:
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Comments
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What sort of policy is it?0
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What sort of policy is it?
Hi there
It's a with profits investment. When I spoke to them about cashing it in 3 weeks ago, nothing was mentioned then. I'm really cheesed off with them because the extra money we would have been getting back will be of tremendous help to me and my young family. £2,000 is a heck of a chunk of that money. If i'd have known this could happen before I took out the policy, I wouldn't have risked it and would have just stuck it in the bank! So many contradictions to do with the benefit system....my child is now 16 so isn't a child anymore, or so say tax credits...yet they can't vote coz, according to the government they're still a child!
Member of: Lightspeed panel: £50 points/juicy brain £20 points/Ipos £40 points/ Greasypalm £50 credited :T Mummybunnymoneysaver :hello:0 -
It sounds as though they are applying a market value reduction http://www.ftadviser.com/financialadviser/insurance/lifeassurance/withprofitsbonds/news/article/20081030/604875b2-a1d6-11dd-abf9-00144f2af8e8/norwich-under-fire-over-with-profits-mvr-move.jspmummybunnymoneysaver wrote: »It's a with profits investment.
http://www.citywire.co.uk/adviser/-/news/adviser-news/content.aspx?ID=3143700 -
The reason is that the stock market is low, and that is where, directly or indirectly, your money gets invested.
I think you will find it is not a fixed £2000. If you can wait until the ecomony picks up they will reduce it or remove the charge, but that could be a couple of years.0 -
Can you not sell the policy on the open market (my partner is). there are many companies which specialise in this, get some quotes first. Will mean you wont pay the surrender fee! Pleanty of companies if you google them.0
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