CGNU With Profits Endowment

lolly1963

Thanks for your swift reply.
I think we was looking at this a year ago but because at the time thigs 'seemed ok!!' at the time it didnt matter too much either way wether to cash in or keep. Obviously we chose to keep.
As we are not desperate for the money and is not being used for mortgage purposed, then perhaps that route is a good idea and see what the situation is in a years time. I just wasnt too sure as wether the 'value' of the endowment would fall too much in the next year. I remember being told previously that endowments of this type make most of the amounts towards the end. We shall see.
Thanks very much for your opinions it helps us a lot.
Thanks again
Lorraine.

EdInvestor

Worth getting a sale quote at www.apmm.org

lolly1963

Yes, almost forgot about them! Will fill the online form in later.
Worth a shot, just to see what they can do.
Many Thanks
Lorraine.

lolly1963

Hi,
An update so far. I have had 2 replies from the above company, ans so far both have said they cannot better the surrender values.
My husband is still thinking he wants to cash it in now, but i dont...LOL!
The way i was thinking that by investing the surrender value at todays rate and then keep paying in the premiums to this amount til sept 2011, then with current interest rates, the return may not be so great. I can fix for this year at 5% (account already opened), but possibly the interest rate for the next couple of years maybe only 1%. I still think we need to take IFA first before any decision, as its eating me up now! I wish NU didnt drag out this reattribution payment, its like dangling a carrot in your face isnt it?

Any thoughts please?
Thanks
Lorraine

dunstonh

I wish NU didnt drag out this reattribution payment, its like dangling a carrot in your face isnt it?

I think the 3 x 3.x% bonuses are likely to be more valuable than the reattribution. I am hoping NU dont do the reattribution now. I would prefer them to keep it and bolster their solvency. At least in the short term.

lolly1963

Hi,
I have just spoken with an IFA over the phone. He was local. He said out of all the people he deals with, then most people are most disappointed with NU's payouts! He more or less said he would get rid of the policy now. He didnt really ask me any details of my policy (i think i gave him most off the top of my head without the info infront of me!) So would it be a good idea to ditch his 'advice' and carry on looking for more? arrghhhhhhh!!
I wonder if its a case of see 10 people and get 10 different answers. If i did have a mortgage to clear then there would be no contest, or even other debt. Thats not the case, but obviously i dont want to be scaremongered because of the currect financial gloom but its easily done. The hunt goes on for some more advice i think.
Ta
Lorraine.

dunstonh

have just spoken with an IFA over the phone. He was local. He said out of all the people he deals with, then most people are most disappointed with NU's payouts!

No offence to him but he obviously doesnt have a lot of experience in this field then. There are far worse. You would have to really put NU plans are the better than average as for as endowments go.

The problem with NU is that they have a lot of legacy issues due to the companies purchased over the years and up to a few years ago their service was awful. It is very easy to slag off NU but the reality is that they are not that bad. I have done a number of reviews of NU endowment plans over the years and have found that, unlike some companies, you really cant tell the good or the bad until you have the detail. Any opinion without the facts is no better than off the cuff remarks from a bloke down the pub. Even with the facts there is a large element of guesswork.

I wonder if its a case of see 10 people and get 10 different answers.

Yes. It really is a crystal ball job. There are many variables that can see it get a lot better or potentially worse. There is no way to tell.

lolly1963

Thanks dunstonh,
Your comments are most welcomed. I have just got off the phone to NU for an up to date surrender value (last one 11th Nov)..LOL! prob hasnt changed much but just curious. Well, there systems are unavailable at the mo and have to phone back tomorrow. But i have to say their service has always been excellent and friendly in the years i have had dealings with them. Its just a shame they cannot provide the 'crystal ball'..heheheee..
Thanks again
Lorraine

lolly1963

Hi All,
Just an update on my situation wih NU.
Got surrender values on 11th Nov 2008 @ £28,952.92
15th Dec 2008 @ £29,184.01
Right, today i thought i would phone for an upto date figure as the special bonus has ow been added....wait for it...£26,899.87..ouch i said, can i speak to someone as i track this policy a few times a year since around 2002 and so far there has never been any drop in surrender values.
They were very friendly and admit they think something is wrong with their calculations and will have to look into it and write to me in about a weeks time.


It has made me really worried now as to what to do about the policy and now i have sme mistrust with NU not getting the figures right (or even that figure could be right!!) Who really knows!
Cheers
Lorraine.

dunstonh

Right, today i thought i would phone for an upto date figure as the special bonus has ow been added....wait for it...£26,899.87

That's the surrender value. What was the change in the current value? I suspect your change is due to an MVR on the surrender value (although that may be offset against a change in the terminal bonus).