Aviva want to decrease benefit on endowment

G51shopaholic

Got another Red letter alert from Aviva but this one came with additional paperwork relating to Option Changes - but with no explanation as to why they want to change Mortgage benefit from £23,500 to £17,807

We took out policy in Jan 1988 so it only has two years left to run.
We swithed to a full repayment mortgage 10yrs ago as we were worried about the way the market was going. We kept the endowment going so we'd still get a lump sum.

Paperwork explains that - Death Benefit, Original Mortgage Amount Benefit, Guaranteed Death benefit, bonus sum assured benefit, guaranteed maturity benefit - all of these will remain unchanged.

option 2 is to leave the policy alone, it also states that if we don't reply by 19th Jan 2011 then option 2 would apply, but in the next paragraph states that if we don't reply we will lose the guarantees associated with the policy.

ALSO STATES THAT INVESTMENT FUND IS
M1 Bonus Series 6 Endowment - how do I check this out for return value or risk rating?

I am very wary of accepting changes to our policy as we've just had all the hassle of Aviva getting it's own way when it came to the huge money that Standard Life had - as a policy holder we were promised 90% of the fund would go to us - then after two years it went down to 40% with Aviva stating it needed the additional money to meet shortfalls.

So why now do they want to change my policy?

Hope Martin reads this one - or can anyone shed light on what their up to this time.

opinions4u

There was a similar thread to this a couple of weeks ago.

https://forums.moneysavingexpert.com/discussion/comment/39318602#Comment_39318602

Worth reading first I think.