With Profits Regular Premium Endowment Policy

khchick

Hi

Looking for some advice please!
In summary I purchased a small endowment policy 10 years ago (not for a mortgage) and it's just reached maturity. The upshot is the final value is less than I paid in over the 10 years. At this time of purchase I was adverse to risk, I was shown illustrations of how my policy may grow... I was only 19 at the time and it seemed like a good savings plan - £20.70 a month for 10 years.

I asked the company for details of their complaints process 4+ weeks ago and still nothing.

Would like to know if this is worth pursuing and if poss best way to do so. I am willing to post more details if anyone thinks they can help!

cheers,
Kirsty

leveller2911

We have 2 regular premium endowments going, both are £20-00 per month.We started them 11 years ago and have 7 yrs to run.

It was 11 yrs ago but I don't seem to remember being told we may get back less than we paid in.

I'm not sure what your best solution is, but im sure someone will pop by as there are a feww very knowledgable bods in here.

Just for interest what company is yours with? ours are with the Co-Op

dunstonh

Would like to know if this is worth pursuing and if poss best way to do so. I am willing to post more details if anyone thinks they can help!

Most of these get rejected as investment returns are not something you can complaint about. Plus, the FOS consider most people to be of cautious risk when it comes to investing and these plans were cautious risk. You say risk averse but that would make you unusual and you would probably need to provide evidence of this.

Plus, most of these plans, whilst obsolete now, were the norm for people to have 10 to 50 years ago.

Also, as you say, you were shown the illustrations of how the plicy may grow, in the lines below that it, in clear text it would say that you could get back more or less than the illustrations and you may get back less than you paid in.

khchick

Hi - the policy is with Royal Liver

khchick

Thanks for your post dunstonh

I checked the wording of the pre sale information I was given, which details what I might get back after 10 years.

The text below states the following;

"These figures are only examples and are not guaranteed - they are not minimum or maximum amounts. What you would get back depends on how your investments grows"

My gripe is that I am getting back less than I paid in over the 10 years - I took this policy out in good faith. The wording on the letter from the Financial Advisor states that I held a "cautious attitude towards investment risk and I used this when selecting the most suitable policy type for you".
I have read through my paperwork and see no reference to getting back less than I paid.

I appreciate your input.

leveller2911

Thats a valid point Kirsty, The company would have made money with your money,which they obviously have to take managment charges out of that but it does sound very harsh too me.....

We have the same wording too and ours make no mention of not getting back our premiums......

opinions4u

khchick wrote: »

I have read through my paperwork and see no reference to getting back less than I paid.

leveller2911 wrote: »

We have the same wording too and ours make no mention of not getting back our premiums......

Is there any reference to "minimum sum assured" anywere?

There should be and that is the minimum return that they are promising you.

khchick

Unfortunately yes...
the sum assured is £2,000
the amount I paid over 10 years is £2,484
the value now is £2320.66

leveller2911

Hi Opinions, don't want to highjack Kirsty,s thread but we have 2 running....

the 1st says minimum sum assured is £3,450 the second is £2,000......

Given that we would pay in by the end of the term £4,320-00 into each ,I do think its very very poor if that does end up the case. Given theyve had the money for 18 years(proportion of ) .In 18 years they would have flattend out the ups and downs of the economy....

Jeez, if that does end up being the case I could have made less of a loss on shares.We thought(maybe ignorance mixed with lack of explination) that there was little risk...

leveller2911

opinions4u wrote: »

Is there any reference to "minimum sum assured" anywere?

If we contacted them ,could they give us a value of the plan as of today??.. If the plan is worth considerably less I would consider taking them out.I should imagine early surrendering them would make some difference..

The bonuses on each this year was £6-00 and £12-00.......

Given that we've had 10 yrs of boom you'd think theyd be capable of making some profit out of Kirsty's and our money???......

khchick

hi leveller2911 what my policy clearly states if you cash in early you may get less than you have paid in - this is the only place it mentions getting less...

I am interested in any further responses, but for me it's not such a huge sum of money, but still as you say when they've had the money for such a length of time you expect things to level out...

at the time, everyone in my family had one and it seemed to be the thing to do...