Norwich Union / Aviva policy maturing 2012

HAVEFAITH

Hi,

We have a Policy Type: Guaranteed Min Cost End, participating in ConvOB Endowment Compound

We do not feel this policy will meet our objectives when it matures in 2012. Is anyone familiar with this type of policy or can explain it?:doh: Thanks

kingstreet

It sounds like a "low-cost endowment" where a guaranteed basic sum assured, plus a percentage of the annual bonus added together at the end of the term was expected to be sufficient to pay off a mortgage.

It was known as a low-cost policy because the basic sum assured was supplemented by term assurance to make up the amount needed to repay a mortgage on death.

ConvOB denotes it's conventional with-profits as I described above, as opposed to unitised with-profits and the OB stands for Ordinary Branch, or Ordinary Business as opposed to IB which would be Industrial Branch, or Friendly Society business.

HTH

HAVEFAITH

kingstreet wrote: »

It sounds like a "low-cost endowment" where a guaranteed basic sum assured, plus a percentage of the annual bonus added together at the end of the term was expected to be sufficient to pay off a mortgage.

It was known as a low-cost policy because the basic sum assured was supplemented by term assurance to make up the amount needed to repay a mortgage on death.

ConvOB denotes it's conventional with-profits as I described above, as opposed to unitised with-profits and the OB stands for Ordinary Branch, or Ordinary Business as opposed to IB which would be Industrial Branch, or Friendly Society business.

HTH

wow!! ... interesting but do these companies try & put you off the scent or what. In my/our case this policy actually matures in mid 2012. We are not looking at this policy paying off the mortgage right now which is a big worry/concern. Trying to work out what to do next. Gonna need to talk through my options etc. I think we are 31% apart in terms of current projections!