ONE Family policy loss

Trillers

I am looking for advice.

I had a tax free investment with OneFamily which use to be the Family Friendly Society.

I got a letter in January saying that my £10 a month policy had been running for 20 years, it stated I had a couple of options.
I could let it mature in April or I could keep it going. It was worth £4070.
I decided to let it mature and take the money.

It has matured and I got a cheque for £3332. I am so angry.
I rang them up and said they should have either protected it and put it in a safety account to preserve the value as it was maturing in 2 months. I know it is unit linked .

Or they should have rang me and told me the value had plummeted ( by 6 years worth of premiums) and I would have carried on paying into it.
I am so annoyed that in this climate they did not think outside the box.

On their website they are saying do not panic and don't cash in your policies and then they go and cash mine in!

Any advice, I have started an official complaint.

eskbanker

So they gave you the options, you made an informed decision, they honoured that decision and did exactly what they said they'd do?

The fact that hindsight now means that you'd have preferred other options to be available doesn't change any of that, so it's hard to see the basis on which you feel they've actually done anything wrong....

Alexland

There is nothing stopping you reinvesting it now at a similar risk profile and waiting for the eventual recovery? This would be roughly the same result as if you had asked them to leave it invested.

SFindlay

Trillers said:

I am looking for advice.

I had a tax free investment with OneFamily which use to be the Family Friendly Society.

I got a letter in January saying that my £10 a month policy had been running for 20 years, it stated I had a couple of options.
I could let it mature in April or I could keep it going. It was worth £4070.
I decided to let it mature and take the money.

It has matured and I got a cheque for £3332. I am so angry.
I rang them up and said they should have either protected it and put it in a safety account to preserve the value as it was maturing in 2 months. I know it is unit linked .

Or they should have rang me and told me the value had plummeted ( by 6 years worth of premiums) and I would have carried on paying into it.
I am so annoyed that in this climate they did not think outside the box.

On their website they are saying do not panic and don't cash in your policies and then they go and cash mine in!

Any advice, I have started an official complaint.

Not sure what you're going to complain about!!

They asked you what you wanted to do with policy, you told them cash it in, they did what you told them to, you've not got as much money as expected so blaming them for doing as you told them!!!! As for "On their website they are saying do not panic and don't cash in your policies and then they go and cash mine in!" No they never YOU cashed it in not them!!!

Did you "think outside the box" and get in touch with them before maturity date as you are clearly saying it was obvious there was going to be a change to value or did you just expect them to look at the many thousands of policies and ask you again?? 

"I rang them up and said they should have either protected it and put it in a safety account to preserve the value as it was maturing in 2 months. I know it is unit linked" so they basically should cash in policy early? How would you feel if put it into a "safety account" and its value if had remained would have rocketed, would you have been happy not to take the extra money??

Bottom line, YOU made decision to cash in so YOU are wholly responsible. 

Old_Lifer

Your policy matured at which point the proceeds became payable.  You say you were given the option of keeping the policy going.  Presumably,   you were given the option of leaving the money with them  by either    placing the  proceeds   (as a lump sum investment)  on deposit  or into a unit-linked fund     or you were given the opportunity of extending  premium payments under the policy  for a further 10 years.

Typically ,   a   Friendly  Society  will have  only a limited choice of funds  available.  The  policy may not allow for  a switch between funds   but where it is allowed,   they would require a written instruction from you before doing so.

You say that you elected to take the money at maturity  so they have  only done what you asked them to do.   Would you be complaining if the unit price had increased?

Sadly,   as they have only done as you asked,      I can see no point in complaining.

Trillers

Yes I suppose you are all right. It's a good idea to reinvest it. Which I might think about. 

dunstonh

I rang them up and said they should have either protected it and put it in a safety account to preserve the value as it was maturing in 2 months. I know it is unit linked .

Providers are not allowed to make fund adjustments unless there is a contractual agreement at the start to do so.   It is your job or your adviser, if you employ one, to make fund adjustments.

Or they should have rang me and told me the value had plummeted ( by 6 years worth of premiums) and I would have carried on paying into it.

It is not their place to ring every person.  The manpower required to do such a thing will not be reflected in the service you are paying for.

I am so annoyed that in this climate they did not think outside the box.

You seem to be wanting something they do not provide.  

Any advice, I have started an official complaint.

And expect rejection.  Providers do not have the regulatory permissions to do what you are asking of them unless you specifically go into a risk reducing fund (known as lifestyling).

Nothing stops you being invested still. You take the maturity and reinvest it.  Simple.