Friends Provident Endowment

jas67

Hi All,

I have a Friends Provident with profits endowment with a guaranteed amount of about £12K. However I am sure this figure used to be higher than this but I no longer have the yearly statements to prove it.

FP say there is no evidence as they don't keep past yearly statements.

Does anyone else have experience of this?

Cheers
Jas67

dunstonh

However I am sure this figure used to be higher than this but I no longer have the yearly statements to prove it.

You dont need the statements. it will be on the policy document. It is set at the outset. It is the basic sum assured to which the bonuses are added to.

kingstreet

If this is an endowment for mortgage repayment purposes, a "low-cost" endowment, the plan would have two sums assured.

The first is the guaranteed sum assured on which bonuses are added. As a bonus is added each year, it also becomes guaranteed.

At maturity, there may also be a final, or terminal bonus, which reflects profits earned by the funds but not distributed earlier as an annual bonus.

The second sum assured is the guaranteed death benefit. This will be the guaranteed sum assured above, plus an element of term assurance to reach the mortgage amount, so the full mortgage could be repaid on death. As bonuses are added, the guaranteed element increases and the term assurance reduces, so there's always just enough to repay the mortgage on death.

Some LCEs had a level term assurance (Sun Alliance) so the death benefit actually increased as bonuses were added each year. IIRC FP had decreasing term assurance, not level.

jas67

Thank you for the replies, it is a low-cost endowment for mortgage repayment purposes, although I no longer own the property.

The figure I believe has been reduced is the guaranteed sum assured on which bonuses are added, sometime between 1999 and 2005.

I am trying to find out if FP have pulled an "Equitable Life" over guarantees.

Cheers
Jas67

kingstreet

Not that I know of.

The Guaranteed Sum Assured would only change if you stopped paying the premiums by making the plan paid-up, or reduced them.

Do you have a piece of correspondence or two to refer to where this reduction is evident?