Anyone have Abbey Life Healthmaster experience

katheight

I have a healthmaster plan taken out in 1994. The paperwork says it is a unit linked permanent health insurance policy. I was revising all my cover and the product particulars say the plan may be surrendered and it will have a cash value if you have had plan longer than 5 years. When I enquired about this recently , I'm told the plan does not have a surrender value. Anyone had any experience of this?

dunstonh

Anyone had any experience of this?

yes. These plans were built in the old days of high returns (and high inflation). The investment element would typically kick build a pot that could be used for later years. They needed to hit target growth rate though. In most cases, they have not hit target growth rate is the economy moved from boom/bust, high inflation to more stable low inflation which brought investment returns down (although still much the same relative to inflation).

So, whilst they would definitely not have a cash in value for the first 5 years, they could later but nothing is guaranteed and in your case, nothing is what they have told you.

katheight

Thanks for replying. Abbey life aren't very good at explaining that, In your experience is it worthwhile pursuing this as I think that has been misrepresented. It is interesting and rather worrying the fund that this is linked to is the fund that my pension is also linked too....

dunstonh

In your experience is it worthwhile pursuing this as I think that has been misrepresented.

How has it been misrepresented?
What evidence do you have to support that?

It is interesting and rather worrying the fund that this is linked to is the fund that my pension is also linked too....

Difference is that the pension is there as an investment that is meant to grow. The fund is not used to pay towards an insurance. This PHI is never meant to have a fund that grows in the same way.

katheight

I have the product information and docs I signed at outset which outline that although primary purpose is to provide cover in case illness prevents you working , the plan does have a value. And I took out this plan instead of others on that basis? Maybe that's not enough...

dunstonh

katheight wrote: »

I have the product information and docs I signed at outset which outline that although primary purpose is to provide cover in case illness prevents you working , the plan does have a value. And I took out this plan instead of others on that basis? Maybe that's not enough...

Unit linked insurance plans were typical in 80s through to mid to late 90s. Abbey only ever did unit linked plans. It never offered non-profit/non unit linked plans. So, they could only retail what they had.

If you see a tied agent, you get what they offer. You should have seen an IFA (who would have easily beaten it on price and quality). However, you cannot complain about that over 20 years later.

Its a bit like going into an Apple store, buying an iphone and then complaining later that you would have preferred an android phone.

katheight

Interesting analogy, though with phones you get what you see and pay for at the time,unlike possibilities or maybe's in the product descriptions of these plans that you pay into on an ongoing basis. I do get your drift and thanks for your input.