Norwich Union Aviva promise

Imnoexpert_2

I'm returning to this issue out of sheer frustration with the paperwork that comes from Aviva every year, and the replies they give to queries on the subject.

I still need help even though I think I understand it (very dangerous).

After another dire shortfall notice on the wife's 25 year endowment mortgage policy (which is now an investment as the house was sold years ago) showing even at 6% growth an £18,400 shortfall on the £42,000 target I thought I ought to make absolutely sure:

a. That the policy would qualify for the promise (and get this in writing)
b How much it might be (given that all the small print about their financial ability to pay and wife paying the premiums.)

I phoned and got a straight answer from a helpful advisor. "Yes it's covered, you'll get £8500, its's within three years of the end so it's guaranteed". She also said "the 1999 projection doesn't come into it" when I asked about that.

The confirming letter is helpful; in that it obliquely concedes the policy is within the promise, and that the maximum promise amount is £8500 but it does refer to the 1999 6% projection and doesn't explicitly say I'll get the maximum.

I have looked at all the annual statements 1999-2005 and can't find any projection specific to the policy (only examples and tables of historic bonus payments). In truth I don't know quite what I'm looking for but I don't think I have ever had it.

I'll have another go at Aviva on the phone. They seem helpful but whoever writes their standard letters and statements needs help!

I am pretty sure we'll get a payment, and that it's going to be worth carrying on paying the premiums but am I right? If I am why can't they put it in writing that says that?

By the way I think I said in a previous post that my (young) IFA advised us to sell this policy because he didn't know about the promise. When I mentioned this to Aviva they said that if we tried to cancel the policy they would have warned us and told us about the promise. I'm not sure I'm convinced but I hope this is the case as it would otherwise be quite easy to sell it off in ignorance.

dunstonh

The 1999 figure was based on the 6% projection figure. A couple of years later they capped the maximum payout figure at that figure irrespective of the growth obtained.

By the way I think I said in a previous post that my (young) IFA advised us to sell this policy because he didn't know about the promise. When I mentioned this to Aviva they said that if we tried to cancel the policy they would have warned us and told us about the promise. I'm not sure I'm convinced but I hope this is the case as it would otherwise be quite easy to sell it off in ignorance.

I know Standard Life issue warnings if you try to surrender their plans and there is a mortgage promise value as I have seen the notifications. However, I havent seen Aviva do this but that is because I havent instructed any to be surrendered. You tend to find the MEP on the Aviva plans is good enough to make them worth keeping. My experience is that many of the Aviva telephone staff are not aware of the MEP unless you point it out to them and then some dont understand what it is as they dont deal with enough of them.