Norwich Union - Unbelievable

bigal993

Hi Guyz
Ive just had a conversation with Norwich union regarding my old mums endownment policy it matures on April the 10th, She took it out in 1992 to cover £23,500 mortgage.
I have spoken to them 4 times since xmas,
here goes
On December 29th I spoke to them they gave me a surrender value of £19,366 which was confirmed by letter.

On the 2nd march she got her maturity statement saying that she would be getting £18,499, So I spoke to them again, I asked if the special bonus for 2008, and 2009 was included in the maturty statemnt, the indinal aldy went away and said NO they are not and she would be getting £1100 on top of the final bonus which was a paltry £711. So I though ok Not bad, so I asked them to confirm that in letter form, which she said she would I also asked if the infoprmation she ahd given me was correct she assured me it was, i also asked if this conversation was recodered for future use it was. Well the letter came on Friday and it was as clear as Mud, But it did say the 2008 bonus was already included as part of her normal bonus, But it made no mention of it in the statement.
I asked then about her 2009 payment as her policy matures in April, So the lady went away and came back saying that the final bonus of £711, inclded her special bonus for 2009 of £690.

I was gobsmacked and asked her what the final bonus rates have been applied to her policy, and she enetered her code and said her final bonus rate was a massive ZERO PERCENT, They had reduced the final bonus rate from 8% to Zero on the 1st January this year.

I told them i thought that was disgusting that they did that when this policy had been in force all that time and 2 months before the end they reduce it too zero, my mums 72 and is now facing a massive shortfall.

Is this right guyz can they really do this ?

Im sure they can but Im furious !!!! :mad:
Al

Gorgeous_George

'Fraid so.

Anybody with an endowment policy should consider getting rid of it - IMHO.

Others will advise you differently.

I am not a financial adviser.

GG

Peter999_2

I'm afraid they can, the sum payable at the end of the policy is not guaranteed.

I'm really sorry this has happened to you, it does seem unfair.

dunstonh

The value of your investment can go down as well as up. The first 2 months of the year saw a 23% drop in the stockmarket. The endowment dropped 4% in that period.

So, in reality the endowment performed very well in that period. had it been unit linked then it would have dropped 23% rather than 4%.

Peelerfart

So Norwich Union can help Bruce Willis, Elle mcPherson, Alice Cooper and the others by leaving a 72 year old lady with a shortfall in her mortgage.

Gives you a weird feeling doesn't it ?.

Perhaps we should remember things like this when it comes to buying other "Aviva" products.

dunstonh

So Norwich Union can help Bruce Willis, Elle mcPherson, Alice Cooper and the others by leaving a 72 year old lady with a shortfall in her mortgage.

The shortfall likelihood would have been first mentioned around 8 years ago. There is something called personal responsibility and acting on information provided.

Perhaps we should remember things like this when it comes to buying other "Aviva" products.

NUs products are actually generally good value. Their servicing on legacy business is pretty awful frequently but the products are mostly fine.

NU are not responsible for the drop in the stockmarket and this is the second drop of this size in the life of the policy. A similar sized drop occured over 2000-2002. So, if there wasnt the willingness to accept such a drop, why want action taken 8 years ago to make changes then?

Age has nothing to do with it. It doesnt matter if a 20 year old had this product or a 60 year old. It would perform in the same way.

Peelerfart

Dunstonh,

You are, of course correct in your comments and you will got no arguments from me.

PF

NAR

bigal993 wrote: »

I told them i thought that was disgusting that they did that when this policy had been in force all that time and 2 months before the end they reduce it too zero,

I sold my 25 year policy one month before maturity date to avoid reduction of bonus, which was to be reviewed one week before maturity date. I "guessed" right and actually got more than I would have done if I had left it until maturity!

danzily

THe Norwich Union last year claimed that my endowment was on target to meet its value insured of 16,200, however, by February this year it had lost a thousand pounds. However, my second endowment, which last year had a shortfall of £700, actually didn`t lose anything and got a final bonus, but the shortfall was still £500.
I am appalled that the "bankers" can still get their bonuses when they`ve robbed the economy, but the tax payers like you and me, lose out, so that huge organisations such as NU can still make a profit, when they have had your money for 25 years!!! Daylight robbery. Norwich Union (Aviva) DOn`t ever try to sell me anything else again!!!!

dunstonh

I am appalled that the "bankers" can still get their bonuses when they`ve robbed the economy, but the tax payers like you and me, lose out, so that huge organisations such as NU can still make a profit, when they have had your money for 25 years!!! Daylight robbery. Norwich Union (Aviva) DOn`t ever try to sell me anything else again!!!!

You have put 2 and 2 together and come up with 5.

You may not have noticed but the stockmarkets, property and the fixed interest sector (and cash at institutional level) all lost money last year. Yet you expect NU to turn in a positive return in that period. Try and be a little more realistic.

danzily

Yes I HAVE noticed that stock markets etc lost money last year, but they have had my money invested for 25 years. You`re not telling me they didn`t make any money from it during that time. Why should I be penalised for their incompetence in doing their job? They are the so called "experts" who we all trusted. So don`t tell me to be realistic - I think it`s about time all the financial institutions and those who sell the products for commissions all get realistic. The consumers have had enough!:mad: