Aviva Endowments - Terminal Bonus Rate

crookedmouth

dunstonh wrote: »

If you look at your 2001 statement or your 2003 (maybe 2004) statement then it will tell you the amount of your MEP.

The Aviva MEP is fully funded to the maximum. So, they dont need to find funds to pay it. They are already there. It is unlikely to be withdrawn now as the worst has gone. Aviva tend to keep quiet about it as lots of people surrender them without knowing the MEP exists. In those cases, Aviva will profit from not having to pay out the MEP.

Just caught up with this - I will take a look tonight.

Edit: On the other hand, with at most four years to run on my endowments, as my mortgage doesn't depend on them and as I have no intention of surrendering any of them, rather than worry about all this, I may simply wait & see. Whatever comes through is a bonus.:beer:

happy_with_my_lot!!

Our Aviva endowment matured today - terminal bonus was £95 per £1000 on sum assured of £17k.

It was a 20 year guaranteed Min Cost End policy taken out May 1991, monthly payments £80.80 to cover a£40K mortgage (which is almost paid off due to our overpayment thank goodness!). We received £30880 (which included £1615 terminal bonus and the maximum MEP of £5900).

So glad we took the decision to overpay the mortgage - would have been really gutted if we still owed over £9k at this stage. After reading various reports of Aviva being slow to pay out we thought we might have had a long wait but have to give credit where it's due they paid us bang on time.

dunstonh

and the maximum MEP of £5900

Nice value MEP. This highlights why it is so important to know what your Aviva MEP is in case you are thinking of surrendering (and giving this up).

Shorty86

crookedmouth wrote: »

I just spoke to Aviva this morning re my endowment. I thought it might be of some use to users as I've had a lot of trouble finding information on the web

My £35 per month endowment is projected to return, in 2015

at 4% ==> £9,500
at 6% ==> £10,400
at 8% ==> £11,300

against a sum assured of £6,100.

Their current final bonus rate is £235 per £1000 assured...

...which is a pretty abysmal 2.35%, compared to L&G (~70%) and Zurich (~100%).

Nevertheless some simple maths suggests that a surrender is probably not a good idea.

Can anyone confirm that the final bonus rate quoted by other companies is calculated against the sum assured rather than the final payout?

I'd be grateful for any thoughts.

You are lucky you have been quoted a terminal bonus. My Endowment matured last week after paying £45 for 25 years. Guess what, NO TERMINAL BONUS. According to Aviva my policy did not qualify for a Terminal Bonus as it hadn't performed well over the 25 years. As my policy was taken out before the Financial Services Act came into force, I have no redress against the IFA who sold the policy (he is dead anyway) or Aviva as they do not want to know anything about it.

Shorty86

My Aviva policy matured this week after a 25 year slog. Guess what! NO FINAL BONUS. This was a Commercial Union Policy who were swallowed up by Norwich Union. I never ever got 3 years notice that there would be no Final Bonus. When I phoned to ask why no FB I was told that as the policy was taken out in 1986 and the fund had not performed well there would be no FB. Note the date, 1986, before the Financial Services Act came into force so no redress for me. I kept getting bumf from Aviva for 25 years that contained info on Final Bonus and "smoothing" of bonuses to cover this. A load of codswallop as I have found out today. Do not touch Aviva with a bargepole if you are setting out on the rocky road of mortgages. I wouldn't even trust them with the insurance of my bike.

dunstonh

Aviva as they do not want to know anything about it.

Aviva have no liability.

I never ever got 3 years notice that there would be no Final Bonus.

There is no requirement to give any notice. Indeed, it would not be logical as investment returns are always an unknown.

Do not touch Aviva with a bargepole if you are setting out on the rocky road of mortgages.

Aviva havent retailed endowments for around 10 years.

I suggest you look at the reasons why endowments failed and understand that rather than point fingers in the wrong directions. Understanding how and why is more satisfying. Even if it doesnt change the situation.

The_Wise_Horse

Just for the record...

Took out a low cost endowment in August 1986
Sum insured £37,500
Monthly payment £46.68
Pay- out last month £29,500
Equates to 5.5% pa

Not brilliant, but happy enough...

JRsrule

Hubby and I have a 25 year, low cost start endowment with Aviva, started in 1987 so due to mature in the middle of next year (it was NU when we took the policy out)
Like others, we were lured with images of round the world cruises and flights on Concorde paid for with all the money that would be left over at the end. Of course, like everyone else I can't prove what was said at sign up and the guy who sold it is long gone.
I've been having red letters for years now, and apparently it was sold too early for me to claim mis-selling. I'm truly confused about whether we will get any 'promise' money or not, so I suppose we will have to wait and see. I'm truly glad we switched to a repayment mortgage when we moved house, so that whatever we do get is ours.
Does anyone know what happens after the final premium is taken and we reach the 25th anniversary? Do Aviva just send us a cheque? Do we have to claim off them? It's so long since we took the policy out...and I'd really welcome any help anyone can offer.

thank you :j

dunstonh

I've been having red letters for years now, and apparently it was sold too early for me to claim mis-selling.

Correct. pre 29th April 1988 cases can only be looked at if the person was an agent of Aviva.

I'm truly confused about whether we will get any 'promise' money or not, so I suppose we will have to wait and see.

Or you can ask them what the maximum mortgage promise value is or you can look at your 2001 or 2003 statements where the promise was introduced and updated.

Do Aviva just send us a cheque?

No. You complete a maturity form in the lead up to maturity to allow them to comply with money laundering regs.