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Family Assurance childrens bond
hilspars
Posts: 59 Forumite
I have just received a ten year statement for a savings plan i took out for my nephew only to find that it is only worth about what i have paid in. I can cancel after 10 years but they have moved me onto a supposedly "better plan". Is it worth sticking with or do I move it? My nephew is 15 in january
Everything you need is out there - you just need to ask..................:A
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Comments
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It's a problem with all Friendly Society policies. As they only involve small premiums and also include a small life assurance element the charges are large as a proportion of the premiums. The falls on the stock market haven't helped either.
However the charges if you continue past 10 years are much lower. If you don't want the money yet you might as well leave it with them until you do.0 -
I have just received a ten year statement for a savings plan i took out for my nephew only to find that it is only worth about what i have paid in. I can cancel after 10 years but they have moved me onto a supposedly "better plan". Is it worth sticking with or do I move it? My nephew is 15 in january
It seems the main aim of these and like products is primarily to pay for the salaries of the sales teams. Not to actually benefit the investor.
Cut your losses and get out and learn a valuable lesson for the future.0 -
These plans tended to break even around year 7-10. Assuming you still have another 6-8 years to go it shouldnt be a concern.
They are a little outdated nowadays and the CTF and unwrapped CTF equivalent (for those that cant have CTF) will be better value in future.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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