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Is this right and fair?
djohn2002uk
Posts: 2,323 Forumite
About 25 yrs ago we took out a "with profits" policy with the Pearl which was designed to pay of the mortgage. Due to other circumstances and changes in our mortgage it has been paid off a few yrs ago but the policy pays out in a couple of weeks.
There is probably a small shortfall in the amount being paid versus the amount we were led to believe we would get but not enough for me to furnish them with such details as what savings we have in banks/building society etc. Which I think is none of their buisness.
The crux of this thread is that I received a letter from them last week saying that over the past few yrs they have paid little or no anual profits on these policies which has built up a pool of money which is no longer needed to meet the funds liabilities to policyholders.
From July 1st this year they will start to distribute this money to policyholders and shareholders, but only those policyholders with policies still current at that date.
My gripe is that they have held back money from our policy but don't intend to give some of it back. Can this be justified and fair?
There is probably a small shortfall in the amount being paid versus the amount we were led to believe we would get but not enough for me to furnish them with such details as what savings we have in banks/building society etc. Which I think is none of their buisness.
The crux of this thread is that I received a letter from them last week saying that over the past few yrs they have paid little or no anual profits on these policies which has built up a pool of money which is no longer needed to meet the funds liabilities to policyholders.
From July 1st this year they will start to distribute this money to policyholders and shareholders, but only those policyholders with policies still current at that date.
My gripe is that they have held back money from our policy but don't intend to give some of it back. Can this be justified and fair?
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Comments
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It is probably not justified or fair but I suspect it is legal otherwise they would not be doing it.0
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Its quite legal. Its no different to those getting windfall shares on demutualisation. A date needs to be decided and a line drawn in the sand. Fall the wrong side and you miss out. Even if its only one day. Such is life.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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