Endowment Fees and Charges

Victor_Meldrew_5

I seem to remember the advice was to start a new thread if advice were needed so I hope this is the correct method of posting to the site :

It's a pity I didn't find this excellent site before I discovered the CA website. I've trawled through most of the articles and posts in the past 72 hours and learnt more about endowments than in the 22yrs I've had one!

Dunstonh's statement "You have to understand that these projections are just examples. They are no indication of how your investment is performing" was a complete revelation!

My position at present is that I have two endowments both with Sun Life Financial of Canada. The first commenced 17 Dec. 1984; Maturity date 17 Dec 2009: Target is £26750; Premium 41.99.

Surrender Information:

Total Surrender Value Dec 2003 £14382.64
2004 £15195.73
2005 £17568.29
Nov 2006 £20667.20

I initiated my endowment complaint using the CA template letter. One of my grounds for complaint being that the "adviser did not fully explain the fees and charges on the policies"

The insurance company replied that "At the time these policies were sold there was no mandatory requirement for the adviser to discuss this area" My first question is , is this statement correct?

If correct perhaps someone could explain to me how the fees and charges are normally calculated on such policies.

My complaint has progressed to the point where I have one week to decide whether I wish to surrender the policy or policies , accept the compensation or put it on the market.This was originally a month before the compensation/redress value is re-calculated but I hadn't discovered MSE then, hence the delay .

I am in a slighltly better off position than most in that if I surrender both policies my mortgage would be paid off but I would have lost £6000 because I redeemed the second policy which was taken out in 1988 with this amount in 1999.

Second Policy details
No Miras as for home improvements
Start Date 7 July 1988
Maturity 2009
Premium £10.90
Target Amount £5000

Total Surrender Value July 2004 £2358.58
2005 £2747.09
2006 £3274.09
17 Nov 2006 £3341.95


I have been offered £750 redress on the above policy . No redress on the first one as I have been better off with an endowment, according to their calculations.

I really need some guidance on Sun Life with Profits Endowment Policies. Are these policies generally regarded as being good performers or not?

How are the charges and the Terminal Bonus normally calculated?

Hope someone can help.