CGNU With Profits Endowment

lolly1963

Hi Dunstonh,
Yes, i know that is the surrender value, but within 2 weeks it has dropped by a significant amount and thats after this years bonus and special bonus added. They even think this figure is wrong and someone is looking into the figure. They say it will take at least a week to look into it.

If it is correct then i have lost all my faith in NU, and only held onto this policy on the promises on the special bonuses. In some ways now i wish i had cashed it in before when i first thought of it. Just a bit of a shock!

Cheers
Lorraine

dunstonh

NU did have some computer issues over Christmas period. I was getting a few weird results on figures requested. So, a problem is possible.

When you have checked values in the past, has the frequency been enough to suggest that the values change daily or does it appear to move in stages. Say every 6 months?

lolly1963

Hi Dunstonh,
Yes, they did say there were some pc probs.
Here r some prev surrender values.
30 Oct 2002 £14,805.14
9 Dec 2003 £13,205.55
9 Dec 2004 £15,596.10
20 Sep 2005 £17,917.49
29 Sep 2006 £23,476.58
6 Oct 2006 £23,959.32
27 Oct 2996 £24,927.92
27 Apr 2007 £25,538.45
11 Nov 2008 £28,952.92
15 Dec 2008 £29,184.01
8 Jan 2008 £26,899.87
Cheers
Lorraine.

dunstonh

Thanks, that indicates what sort of policy it is. Sometimes in the past when I have had to get manual valuations (rather than the computer feeds through to my software), the values given out by the call centre have been unreliable. They often forget to include terminal bonus. Expecially on plans that do not include the terminal bonus as part of the main value used for projections and they have a fair load of those. Unitised with profits in the CGNU especially. It appears they look at the current value, deduct the surrender penalty and any MVR but dont always put the TB back on.

That said, I would have expected you to suffer around a 10% drop in October or November (it was as high as 20% but has recovered a fair chunk of that since then). That didnt happen with yours at that time.

lolly1963

Hi Again,
I read on another post that somebody else with a NU endowment has also had a big drop in their latest surrender value.
I just phoned again and the policy has made over £35 since 8th Jan 09 (last Thursday) somethings deffo wrong, hmmm,but from 15th Dec lost well over £2000. They still need to look into it but say that there is no MVR imposed on my endowment. The plot thickens, and i just have to wait till at least the end of the week until somebody has looked into it and written to me! The lady did tell me to write to them via their website to complain, thing is, until they give me an answer what do i complain about...getting the hump with it now....
cheers
Lorraine.

EdInvestor

lolly1963 wrote: »

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.

Given that the endowment is invested in equities, bonds and property, and all these markets have fallen over the past 18 months, some by 30% +, sooner or later your endowment was going to fall. The fall you quote is only 7%, which suggests a possibly larger underlying fall, which has been made less nasty by the distribution money.

It's very likely your policy value will keep falling for a while yet. I would thus suggest you surrender it now, especially as the TEP traders have not detected any hidden value in it.

lolly1963

Hi,
Thanks for our reply.
That doesnt make sense to me though. How can it make over £35 in value since last Thursday, and yet the previous couple of weeks lost way over £2000 after the bonus has been added. Even NU cannot tell me why, seems a complete shambles, I was only holding on because of the extra bonus attatching to the policy, and i thought they were trying to protect the customers like myself that were hanging on, thats what i read anyway.
That doesnt seem to make it very fair at all. Wish i had cashed in last year now when i first started thinking about it. I have phoned the twice since last Thursday and still they cannot tell me why the drop. Doesnt make any sense to me at all.
Thanks for your input.
Lorraine.