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Phoenix cancels terminal bonuses
EdInvestor
Posts: 15,749 Forumite
On all policies under 25 years old.
http://www.telegraph.co.uk/finance/personalfinance/investing/5964414/With-profits-cancelled-terminal-bonuses-heap-woe-on-policyholders.html
http://www.telegraph.co.uk/finance/personalfinance/investing/5964414/With-profits-cancelled-terminal-bonuses-heap-woe-on-policyholders.html
Trying to keep it simple...
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Comments
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Not much of a surprise
Pearl group was based on borrowing money and buying dead insurers. They had problems renogotiating their debts recently and as most With Profits funds are not ringfenced from the asset of the company, dropping the bonus was a logical outcome.
These zombie funds have been useless for years but even more so now. Unless there is some contractual reason to stay (massive exit charge that wont be able to be recovered by alternative of guarantees in place) then you should really be considering your options.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Soime Phoenix policies have quite high guaranteed values, hard to match at a time of low interest rates.These policies can be worth keeping to maturity.Trying to keep it simple...0
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EdInvestor wrote: »Soime Phoenix policies have quite high guaranteed values, hard to match at a time of low interest rates.These policies can be worth keeping to maturity.
Yes. Hence why I mentioned contractual reasons.
There are also a number of Phoenix unit linked plans. They shouldnt be confused with these.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
We are currently not paying a terminal bonus on terms of 25 years or less on policies similar to PALAL policies.
Odd then that my 25-yr old Scottish Prov with-profits endowment policy will mature next month with £850 TB. Not enough to merit throwing a hat in the air, but still better than 0%.
Overall the policy has given a return of 4.8% tax free.0 -
Will the £850 still be there in a month, one wonders?Trying to keep it simple...0
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My maturity letter from Phoenix is dated in the last week of July; elsewhere they advise that they "usually" set TBs in Jan and July. I guess they could reset TBs at any time though.0
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