Brother in Law and his Endownment !

fruitpie

EdInvestor wrote:

Well done Leona, thanks for reporting that.:T Others please note: don't take No for an answer from FP, stick with it - and see the rules above, the time bar kicks in three years from the time you receive the red "high risk of shortfall" letter. Not before.

Hi again EdInvestor, Whats this " red " letter, none of my Bro in Laws letters are "red" ..... ? Cheers

EdInvestor

Hi fruitpie

A "red letter" should state there is a "high risk of shortfall" on the endowment. Some providers decorated their letters in red so that people couldn't be in any doubt of the need to take action.

vinno65

leona71 wrote:

Yep i will keep you all posted with the outcome, i've been 'at it' for a few months now sending letters back and forth. My so called time barr letter had the phase 'wait and see' so that's exactly what we did. Explained this to them and they've released the barr. Honestly it's truely worth while fighting for as no-one likes to be ripped off and that's exactly what i was when they sold me the policy.

So i suppose my next letter will be the outcome, whether i get compensation for the large shortfall or not. Fingers crossed.

Good luck

Leona

WelL done Leona71,
I'd like to think my recent victory in court against FP re this "red letter" may have had something to do with their change of mind regards your time bar, who knows?. FP are known for ridgedly up holding the time bar so again well done.
regards Vinno

fruitpie

EdInvestor wrote:

Post some more details about it.

Company it's with ( original and current)
Guaranteed sum assured
Declared bonuses
Surrender value ( ring up and ask)
Monthly premium
Maturity date

Hi EdInvestor,Vinno and others...

Info below which will hopefully enable you to comment on Bro in Laws policy.

1. RSA, now, Pheonix
2. 15750.00
3. 1638.00 (we think)
4. 3693.00 (defo - he rang today)
5. 21.75
6. 2016

Hope this helps and thanks for your time.

EdInvestor

Hello again fruitpie

If your BIL surrendered this endowment and put the money on deposit @4% also paying in the premiums to maturity he would end up with 8,704.

You need to compare this amount with the guaranteed value which he would get if he kept paying into the policy.The G/V is made up of the declared bonuses plus the basic sum assured.[I think you've given me the death benefit/target amount above, not the basic sum assured.]

These Phoenix policies are unlikely to pay out more than the G/V at maturity.

Your BIL would probably get a higher return if he surrendered and paid the money in to reduce the amount owed on the mortgage (assuming its rate is higher than 4%) and this is usually the best thing to do.