We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Scottish Amicable Endowment
paulo1888
Posts: 151 Forumite
Hi
I was just browsing through my old Scottish Amicable Endowment issued in 1993 and due to mature in 2015.
My monthly payments are 33.80 from 1993,to cover £19,000
What i can't understand is that the covering letter states "this plan has been issued as 10 identical policies).
I have 10 separate schedules each individually numbered with my policy number and ending in 001 to 010.
Each one is for £3.38 and covers £1,900
I have tried goggling this but cant find the answer.
Has anyone any idea why they would divide my endowment plan into 10 different plans,
Many Thanks
I was just browsing through my old Scottish Amicable Endowment issued in 1993 and due to mature in 2015.
My monthly payments are 33.80 from 1993,to cover £19,000
What i can't understand is that the covering letter states "this plan has been issued as 10 identical policies).
I have 10 separate schedules each individually numbered with my policy number and ending in 001 to 010.
Each one is for £3.38 and covers £1,900
I have tried goggling this but cant find the answer.
Has anyone any idea why they would divide my endowment plan into 10 different plans,
Many Thanks
0
Comments
-
Segmentation.
It provides flexibility should you wish to surrender or amend the policy.
It means you don't have to cash in the whole policy should you wish to surrender but don't want the full amount.0 -
Has anyone any idea why they would divide my endowment plan into 10 different plans,
Life policies are nearly always segmented for tax reasons. It allows you to make withdrawals in a different way (cashing in x number of policy segments instead of across the policy). Tax is handled differently with both methods.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 -
Many Thanks for your replies. I have never heard of this before. Makes sense. Thanks again0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards