underperforming endowment - do I get rid?

Yorkshire1944_2

Very much appreciated, thank you

stressedoutmum

To Editor/Compensationitis.
Stressedoutmum again. Now you 2 have really freaked me out since I told you I took the policy out overseas. The FA was based in the United Kingdom and visited once a month. The policy was taken out with via a UK Company with AXA Equity and Law. Why should the fact that I took it out overseas make a difference if both the FA and company are UK based. It was a Low Start Homebuyers Investment Plan. I have only 8 years to go when I need this to pay the mortgage off. I have got a claim in with the Financial Ombudsman since the company who initially sold it to me have closed down. The office is still there but another company run it and so its not their responsibility. Am not holding my breath with Financial Ombudsman as I don't know many people who have had any compensation. However I am not sure what to do now for the best and could not sleep last night thinking about it. Please keep any replies simple as finance is not a forte of mine. thank you. Am now a really stressedoutmum now.

Compensationitis

Sorry stressedoutmum but you should ask the clowns in power why they think a UK subject (we are not citizens) based overseas or even on BFPO premises should not be afforded the same protection as an immigrant based in the UK.

I sincerely hope your get your just desserts.

Having looked at it again you may have a claim against AXA so keep me posted on the findings of the numbsculls at the FOS.

EdInvestor

SoM

As I said before IMHO you should cash in the endowment, use the money to reduce the mortgage amount and increase the monthly mortgage payment by adding the endowment premiums to it.You may need to further increase the payments later - or remortgage to a better repayment deal.Replace the life cover if you need it before you surrender the endowment.

Frankly I think you will have very little chance of getting any compensation, and even if you do, it won't solve the problem.

Sorry I couldnt be more helpful, best wishes for the future

Kerry_o'keefe

I am another member of the should I trade in or continue with my under performing endowment. Eagle Star low cost endowment plan. Basic benefit currently £5283,existing bonuses £3369. Death benefit £18,600. Matures Nov 2011. Costs £22.02 per month. They maintain they will be able to achieve 4% until 2011. They have failed to achieve anything like a reasonable interest rate from day 1. I have not sought an encashment value from them yet. Should I stay or should I sell ?

Many thanks

Kerry

EdInvestor

Hi Kerry,

If you can provide the surrender value, we can try to work it out.

dunstonh

Kerry_o'keefe wrote:

I am another member of the should I trade in or continue with my under performing endowment. Eagle Star low cost endowment plan. Basic benefit currently £5283,existing bonuses £3369. Death benefit £18,600. Matures Nov 2011. Costs £22.02 per month. They maintain they will be able to achieve 4% until 2011. . I have not sought an encashment value from them yet. Should I stay or should I sell ?

Many thanks

Kerry

Until you have a surrender value, no guidence can be given. The 4% figure would be good guidence.

They have failed to achieve anything like a reasonable interest rate from day 1

They dont pay interest. From day one, you got £5283 given to you. Then on top of that they add two types of bonuses. Annual bonuses are low currently because there insurance companies have had to lower the stockmarket content of their with profits funds to meet financial solvency requirements (which have become tighter in recent years). Terminal bonuses have dropped because we have just had a stockmarket crash. These have started to be added again now but terminal bonuses are never included in the projection. This is wrong in my opinion as many policies show a shortfall without the terminal bonus being included but show a surplus with it.

rizla01

Compensationitis wrote:

Standard Life has slashed surrender values over the last three years, it could be that they were paying too much at one time but now the FSA has thown a spanner in the works and forced them to sell a massive chunk of equities just before the market went up and made them buy bonds just before that market went down!! Then they have the 'Folotation' to deal with, very expensive for policyholders but very rewarding for the directors and officers.

You will probably work out that the premiums you've paid over the last three years have done nothing for your investment with them.

Having siad that I believe it will still have a good chance of exceeding the mortgage amount but as the Editor keeps pointing out, you should plan for the worsts case scenario.

Right.

Would I be advised to let it carry on, bearing in mind the above facts or would I be better off withdrawing my funds, making no further payments and investing the money elsewhere?

Riz

EdInvestor

Hi Rizla,

Can't help you until you come back with the figures, in particular the total guaranteed value, which is the combination of the guaranteed sum assured plus the attaching declared bonuses so far ( not the same as the terminal bonus.)

It would be best if you rang up Standard life and got the figures updated as possibly your surrender value is out of date.

Kerry_o'keefe

I will get the surrender value on this and another policy originally with Allied Dunbar and now under the Zurich umberella (just like Eagle Star). I will also provide more details re remaining payments etc. It would be very interesting to find out if it is worth cashing in. Thanks again