Norwich Union

Eagle_50

Hi there

Just found your site - amazing stuff. Hope you don't mind me posting a question - any help is very gratefully received.

We have a Norwich Union life policy originally taken out in 1991 with an endowment mortgage. Like so many others it has a big shortfall which we accept. We decided 18 months ago to surrender or sell the policy but decided to keep it going in order to benefit from the NU reattribution and special bonus payments. We won't keep paying in to maturity under any circumsatnces - unless someone can persuade me otherwise!

We need to decide whether to:

1) surrender or sell now and lose any future reattribution benefit.
2) carry on paying in and surrender or sell after the reattribution, which may never happen and the value of which is unknown.
3) to make the policy paid-up to save £500 a year in premiums, take any reattrution benefit if it ever happens, then surrender or sell.

The policy start date is 01.08.91, maturity date is 01.08.16
The premuium is £42.13 per month
Value on death is £31,000
The basic sum assured is £10,075 - it reduces if "paid-up" to
Total regular bonuses to 31.12.08 were £6,227.10
The projected maturity values quoted are £17,900 @ 4% growth, £20,200 @ 6% and £23,000 @ 8%.
The surrender value is £10,696 (not had any offers yet to buy)

As an aside, I'm livid with NU as I've called them on several occasions to discuss my dilema and to try and get even an estimate of the reattribution value to work out whether it was worth carrying on paying premiums. I didn't know that there was a "paid-up" option, they failed to inform me of this option and I think that's a dereliction of duty. I've complained, asked for compensation but they're saying I never specifically asked for all the options.

Sorry to bang on at length. Any helpful comments, as I say, most gratefully received.

dunstonh

I'm livid with NU as I've called them on several occasions to discuss my dilema

What are you expecting from them? They dont hold the authorisation to give advice, opinion or comment or discuss your options. They can only provide hard facts.

and to try and get even an estimate of the reattribution value to work out whether it was worth carrying on paying premiums.

How can they answer something that isnt known?

I didn't know that there was a "paid-up" option, they failed to inform me of this option and I think that's a dereliction of duty.

Its not their responsbility to tell you unless you asked about it.

You seem to want them to act as an adviser but the FSA wont allow them to as they dont hold advice authorisation. You should be asking these questions to an IFA who does have the authorisation.

danzily

Norwich Union have no customer loyalty. I have been fighting my endowment shortfall on the premise that their promotional literature in 1983 which stated "this policy is designed to repay your mortgage AND provide tax free cash lump sum". Plus their letter to me admitted their correspondence had been unfairly misleading, but the NU will NOT admit liability and repay my mortgage! I have a shortfall which I am considering fighting for in the small claims court. Any comments/advice welcome

jm28cardiff

danzily wrote: »

I have been fighting my endowment shortfall on the premise that their promotional literature in 1983 which stated "this policy is designed to repay your mortgage AND provide tax free cash lump sum".

There is nothing misleading about that statement, that is what endowments are designed to do. There is no promise or guarantee in that statement that it will happen though.