Mis-sold Life Assurance

kmfpod

What to do with a Life Assurance Policy?

As a financially naive (easy target :mad: ) teenage back in 1986 I took out a policy with a company called General Portfolio Life Insurance PLC (name should have been a giveaway I suppose :rolleyes: ). GAN later took over the policies and it is now with Windsor Life.

The original salesperson who came to my house said it was a great way for saving for my future - 'did I want a new car or pay for my wedding perhaps in my twenties'! I therefore took out the policy believing it was for approx 10 years when it would mature.

Payments became too expensive so I ceased them when I began earning weekly. Sorting out my affairs (as a result of this website I may add :T) I wondered whatever happened to the anniversary date of the policy. I telephoned Windsor Life who now have my policy to be told it was a LIFE ASSURANCE POLICY :eek: with a fund value of approx £2,000 and surrender value of approx £1,000!!!

Is there anything I can do in my interest to retrieve the funds - to invest a little more wisely - or is it best left alone for payment on my death :eek:

The fund is a Variable Investment Programme but Windsor Life will not tell me who the funds are invested, whether they are high/low or medium risk.

Any advice would be welcome minus comments about my stupidity in the first place! :rotfl:

dunstonh

You are pre 29th April 1988 so the ombudsman and complaints proceedure wont apply.

Is there a maturity date with the policy or is it whole of life? Many savings plans around 1986 would have been life assurance based. However, there were also whole of life assurance plans with an investment element which would be inappropriate for you but for the inexperienced person, they wouldnt be able to tell much difference.

kmfpod

The policy is whole of life they tell me and that it is not held in trust or assigned to anyone. So I assume it will safely go to my husband in the event of my death (which is what I would prefer anyway).

They say to surrender it would mean a penalty fee of just under £1000! When the surrender value is only £1,128.20! :eek: The only option they said was to put it into another policy if I wanted, but surely that would incur set up charges - and, I think, far too much hassle probably.

Am I best leaving it where it is - I just want to maximize the money in there (now I've discovered it exists) without adding to the policy further by making any payments into it again! Thanx

dunstonh

They say to surrender it would mean a penalty fee of just under £1000! When the surrender value is only £1,128.20!

The surrender value is after the penalty. Not before.

Am I best leaving it where it is - I just want to maximize the money in there (now I've discovered it exists) without adding to the policy further by making any payments into it again! Thanx

It is not a savings plan. The funds are not being maximised unless you die. If you want savings, you should re-consider your options. If you want life cover, then it could be ok. However, do you really need that life cover?

kmfpod

Well I already have a life assurance policy (endowment policy) so don't think I need the money in this one as life assurance - after all, I took it out to save! :rolleyes:

However, I am not a risk taker when it comes to putting my money anywhere - and the feeling that this Policy is putting the money at risk of decreasing (stocks and shares) or not growing at it's best safely makes me feel uncomfortable.

What it boils down to is... am I (or a beneficiary) more likely to get a better return by sticking the surrender value into a high interest/no risks account somewhere OR leaving it in this one? Thanx and I hope I haven't bored you too much!

dunstonh

given your risk profile and that you dont need the life cover, you should be looking at savings.