How to stop Scottish Widows and Zurich cashing up savings policies during shares collapse.

infoMSE2020

How can we stop two life policies from being cashed up when the shares they contain have just crashed. Zurich and Scottish Widows are currently insisting that the plans must end on their maturity dates at middle and end of March 2020, and the shares must immediately be converted to a cash sum.  The smaller plan has in theory just lost 6k according to Zurich, and the larger plan due to mature at the end of this month will likely loose 25k. We wish to freeze the accounts with the shares still owned and wait for the market to cycle back again. Their insistence on converting now will cause extreme financial hardship, probable loss of family home with dependents. The mortgage company to which these monies should be paid are happy to extend the mortgage term, but we need to stop the policies being converted from shares to cash during this crash. Help please.

Linton

Why not immediately reinvest the cash into something as close as possible to the current investments.  In this way you would only lose a day or two's fall's (or rises).

Jeremy535897

Linton, if the benefit of the policies has been assigned to the mortgage company, that won't be an option. Be careful you don't accidentally give investment advice, however innocently, unless you're qualified to do so. OP, speak to someone who knows the legislation, but if the insurance companies say the rules require them to sell everything, I assume they are correct.