Unit Linked Endowment - Early Termination Fee

fmcnasty

Hi there..

I am looking for some helpful advice, unfortunately with a change in personal circumstances I have decided to cash in a unit linked endowment policy I was sold in 1990.. the value of the policy is around £15k however the firm holding the policy - Country Wide/Irish Life are charging me a fee of £600 for early termination :mad:

Does this early termination fee seem extremely high, I was prepared to pay them a fee but I feel this is far too much.

Any help much appriciated

dunstonh

Does this early termination fee seem extremely high

No.

I was prepared to pay them a fee but I feel this is far too much.

Why didnt you raise that as in issue in 1990 when you took the policy out?

Its a contract event that was set in stone in 1990. They havent changed that charge and whilst modern products and investments dont do it, you are looking at a 1990 product, not a modern one.

You agreed those terms when you bought the product. The charge is not considered unfair as its part of their published terms and conditions and they have not altered it. You are not fulfilling your part of the contract and they will lose income because of it and the penalty covers some of that lost income. That is why it existed.

EdInvestor

It's still an outrageous rip-off.Did your broker not point this out at the time?