Lincoln Financial foundations and horizons policies help - what to do please?

Dilfred

I have 2 plans with Lincoln which I took out around 10years ago when I was rather young and naive. I have recently been going through all my finances and trying to work out what to do with these things.
The 2 plans are:

Financial Foundations (taken out in 1998)
A unit linked protection policy that you can adjust as your needs change.
I appear to have taken optional benefits of income protection, a cash benefit which provides a lump sum if you have surgery, I have also taken additional protection in the form of critical illness and permanent disability.
Life assured / benefits include
critical illness benefit for 26k no expiry date
permanent total disability for 26k no expiry date
income protection for 1k expires 2029 (when i'm 55)

The policy offers a selection of investment funds.
Currently paying 40pm into it, and I think the premium has gone up each year.
My investment to date being in 1 fund totalling a value of £1500
Balanced Man 3

The other policy is called
Financial Horzions (taken out in 1999)
A unit linked savings policy design to build capital over the long term that provides a guaranteed amount to your beneficiaries after you die
Early payment is given after diagnosis of a terminal illness.
I also appear to have taken an optional benefit of critical illness and permanent disability prepayment options equal to the amount of your life cover.
Life assured / benefits include:
Death benefit 27k expires 2024 (when i'm 50)
Critical illness 28k expires 2024 (when i'm 50)
permanent disability 28k expires 2024 (50..)

The policy offers a selection of investment funds.
Currently paying 50pm into it.
My investment to date being in 3 funds totalling a value of Policy value £4000
North American
2nd European
UK Equ Grwth Life

The problem I have is that I feel really stupid for asking, but I cannot remember why I took them out and am a little afraid of going to an IFA until I at least have some idea what these policies do and whether I should even keep them/scrap them/change them etc..

I am also rather confused as to why I should need / want critical illness/disability on both of them.
Also what is the payout of these if anything?
My memory seems to think that the horizons one is a saving scheme that will give me a lump sum at the end of it, but reading what I've just written I'm not sure that is the case. To be honest, I am not sure why i'd want a savings plan that does nothing expect payout my salary (not even correct now) when I die.
The other looks like just plain and simple critical illness for 1 person without any dependants, albeit potentially rather expensive?

The other thought is that since I took these policies out, my job has changed considerably, so my income is more than quoted above.
I also now have a mortgage, but neither of these would cover that I think???
I also have a fianc!e and child whom I presume also do not gain from these.

All I am asking for please is a little understanding of what these policies do and what given the limited information I can remember / share above.

I cannot but help think that 90pm can be better invested nowadays, I am just rather scared by the thought of potentially losing whatever I've already paid in etc. however sometimes it's better to cut one's loses than continue to pay into something blindly.

Thank you very much in advance for any help suggestions. I am currently searching my parents to see if I can find the original bumph the IFA told me, and what it all means. Maybe that has more information that will make it clearer. The problem is that I have no way to contact him to even find out what it was.

Also, do you think these could have been mis-sold? If so, what sort of comeback do I get?

dunstonh

They are primarily life and critical illness cover plans. The unit linked part was fashionable about 15-20 years ago. A number of the tied salesforces kept them past their sell by date but that often happens.

They are not investments and shouldnt be considered as such. They are obsolete unless your health means that you cannot use modern products.

am a little afraid of going to an IFA

At least you are considering an IFA and not a lincoln tied rep.

I am currently searching my parents to see if I can find the original bumph the IFA told me

Lincoln are not IFAs. They were tied agents.

Also, do you think these could have been mis-sold?

Nothing you have posted suggests that. If you had a life assurance need then these met that need. Tied agents only have to sell the best product in their product range and not give best advice overall. So, this was their product and that is what you got.

Dilfred

my health is not an issue, so I can expect to get modern replacements. Based on the market has changed and that there are better options available now, would it be simpler to cash these 2 policies in and get new ones?

To be honest, I am not sure why I would have particularly wanted life assurance when I was 24, young free and single, so am now racking my brains on that one.

I am also rather annoyed now thinking that I've been paying into 2 plans that effectively are the same thing, or at least similar, but different. Again this maybe just my misunderstanding.

I think i'll ring up Lincoln and inquire about cancelling them and then seek proper IFA regarding have a child, Fianc!e and mortgage and go from there. Times have changed in 10years...

dunstonh

To be honest, I am not sure why I would have particularly wanted life assurance when I was 24, young free and single, so am now racking my brains on that one.

You could pursue a mis-sale on that one. With no financial need for a life assurance then you shouldnt have been sold one. The CI policy wouldnt be a mis-sale though.

Advisers, whether tied or independent, have to recommend to match your needs. You had no need for life assurance so I would be inclined to complain on that one. If you do speak to an IFA, a good one will help you with the complaint if you decide to go down that route.

abcsave

Wondering how you got on with exiting the Lincoln policies?
I have similar problems with Lincoln Financial Foundations. I want rid of it, and to get as much back as possible. I didn't need it when I was sold it and I still don't need it.

Also got sucked into one of their Maximum Savings Plans which will shortly mature. Assume it is too late to something about that? (can anyone comment?) Would have been better off with an ISA I am sure.

Any help appreciated.

dunstonh

I have similar problems with Lincoln Financial Foundations. I want rid of it, and to get as much back as possible. I didn't need it when I was sold it and I still don't need it.

If you had no financial need for the product then complain.

Also got sucked into one of their Maximum Savings Plans which will shortly mature. Assume it is too late to something about that? (can anyone comment?) Would have been better off with an ISA I am sure.

a) was an ISA available when you took this product out?
b) if yes, then was the premium you pay enough to qualify for their ISA (remember they were tied reps so they only have to sell from their range. If their ISA premium minimum was say £100pm and you wanted to pay £40pm then they cant sell the ISA. Thats one of the limitations of using a tied rep).