Pearl Endowment worth keeping??

giraffe25

I rang up Pearl today regarding the "Pearl Promise" and it is a guarentee
Pearl will increase my endowment by £15k at the end of the term, so the maximum shortfall on my endowment is £4500 on a target of £40k.

Pearl are sending my docs explaing the above thru the post

Thanks Gifff :T

EdInvestor

Check it out with the regulator. Pearl is a zombie fund. Very unlikely they will be able to make good on any such promise.

https://www.fsa.gov.uk

giraffe25

EdInvestor wrote:

Check it out with the regulator. Pearl is a zombie fund. Very unlikely they will be able to make good on any such promise.

https://www.fsa.gov.uk

Thanks for all your post but i'm more confused than ever,
Pearl says one thing and you guys another, how do i find out who is correct??

Just ring up the Fsa or any other means?

I do appriciate all your posts i'm just confused

Girrr

ReportInvestor

When is a promise not a promise?

When it's from an insurer

IA Link - Article from December 2003

Pearl, at least, were doing their best to put on a brave face, though.

"......Mr Cazalet estimates Norwich Union's potential liability from the policy promises at £1bn, but reserves have been put aside to meet only the predicted next three years' costs. With Standard Life the potential liability is £1.5bn, with only £300m reserved. Pearl Assurance has put aside £230m, which Pearl says is a realistic estimate of the actual cost.

The companies may be forced to change their approach, Mr Cazalet says, and he is concerned by recent Norwich Union letters to IFAs. "Norwich Union is saying, 'Up until now we have been paying out on the promise'," he says. "What does that mean? Why 'Up to now'?"He is also worried Standard Life may eventually find the cost of meeting the promises to be too great. "So will they have to renege on the promise?" he asks......."

## - Cazalet was later proved right. Standard did renege.

giraffe25

Thanks for the link Reportinvestor,

As i am planing not to use this endowment to pay off my mortgage,

I think i'm not going to cash it in, as £19k (sum assured + bonuses)
and maybe the promise increasing it to £35K is to much to risk (i know risk!!)
compared to surrender value of £7k.

Pearl are honoring the promise upto now only another 12years to wait :undecided

I think anyway ??

girrr

mblm07

girr,

I had the same dilema with the Pearl promise, couldn't find any wording that would guarantee they had to pay up. In my case I cashed in this year, miselling compo , as I had 8 years to run and didn't trust any money would still be in the pot to pay the promise. Read 'Take Offer or Continue with policy' thread for my story.....but it does depend what type of policy you have!

Rgds,
Mblm07.