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Equitable Life With Profits capital distribution letter
Pincher
Posts: 6,552 Forumite
Just got a letter, dated 12th Apri 2016, which seems to say they (Equitable Life) are giving me 35%, but they might take it away any time.
As far as I understand it, this is what used to be called the Terminal Bonus, so if I had £10,000 in the policy on maturity, they will add £3,500 to the redemption figure.
The 35% can go and down.
The letter talks about "the world economy is once again in turmoil.....".
Two paragraphs worth of scare tactics, followed by "it is not unthinkable that the capital distribution may have to reduce."
I take it to mean: "Why don't you take the money and run, before we change our minds and reduce the Terminal Bonus."
It's got a certain similarity to the discounted mortgage balance if you redeem the mortgage early deals during the credit crunch.
There is an AGM next month, so there is some sort of manoeuvring going on. Is it some kind of veiled threat that they will be reducing the 35% at the AGM?
Plenty of time till I have to redeem. You guys can leave. I'll be the last Tontine member who stayed, and clean up on the reserve.
As far as I understand it, this is what used to be called the Terminal Bonus, so if I had £10,000 in the policy on maturity, they will add £3,500 to the redemption figure.
The 35% can go and down.
The letter talks about "the world economy is once again in turmoil.....".
Two paragraphs worth of scare tactics, followed by "it is not unthinkable that the capital distribution may have to reduce."
I take it to mean: "Why don't you take the money and run, before we change our minds and reduce the Terminal Bonus."
It's got a certain similarity to the discounted mortgage balance if you redeem the mortgage early deals during the credit crunch.
There is an AGM next month, so there is some sort of manoeuvring going on. Is it some kind of veiled threat that they will be reducing the 35% at the AGM?
Plenty of time till I have to redeem. You guys can leave. I'll be the last Tontine member who stayed, and clean up on the reserve.
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