Norwich Union - Reattribution

Wsb5tails

All very interesting, I stumbled across this thread while looking for something else and had forgotten I was waiting to get a progress report on this at some point. What I dont understand is: if I vote not to accept the offer and receive the incentive payment am I effectivly rejecting a lump of money forever or am I gambling on getting a bigger chunk at some point much later?

Policy matures 2022.

alared

IMO you should grab what`s going when it`s going.

You cannot trust insurance companies to do anything,they are always trying to wriggle out of their responsibilities.
The Pru is a typical example,they were going to have a re-distribution but have changed their minds,obviously because they weren`t going to get enough out of it.

My post #91 is taken from an article where the first part is actually BAD news about how much these companies are going to cut the final and annual bonuses in the coming weeks.

dunstonh

My post #91 is taken from an article where the first part is actually BAD news about how much these companies are going to cut the final and annual bonuses in the coming weeks.

Strange thing is that January values on the with profits plans are up between 2 and 4% on Decembers values which were themselves up 3.3% due to a special bonus. Surrender values were up by similar amounts as well.

I guess that article you read is making guesses of a possible future rather than an actual future. Just like Liverpool supporters well tell you that they will win the league this year.

alared

Bonfire of the bonuses: With-profits savers face a big shock as maturity payouts are slashed again

http://www.dailymail.co.uk/money/article-1104688/Bonfire-bonuses-With-profits-savers-face-big-shock-maturity-payouts-slashed-again.html:mad:

expressman33

alared wrote: »

Bonfire of the bonuses: With-profits savers face a big shock as maturity payouts are slashed again

http://www.dailymail.co.uk/money/article-1104688/Bonfire-bonuses-With-profits-savers-face-big-shock-maturity-payouts-slashed-again.html:mad:

I have had a prudential bond for 7 years(invested £25k). I was going to cash it in last year when worth 36.5k(could have got a 2 year fixed rate bond paying 7% pa - value after 1 year = £39k)but hung on due to the reattribution possibility.Just had a valuation , now worth only 34.5k. So lost out on £4.5k

dunstonh

I have had a prudential bond for 7 years(invested £25k). I was going to cash it in last year when worth 36.5k(could have got a 2 year fixed rate bond paying 7% pa - value after 1 year = £39k)but hung on due to the reattribution possibility.Just had a valuation , now worth only 34.5k. So lost out on £4.5k

Values have fallen as you would expect but Pru have tended to keep the terminal bonus mostly in place but impose the MVR. The daily bonuses are still being added though.

Remember investments zig zag. You cannot compare them to savings in short term periods but have to consider them over the long term.

All the Pru bonds on my books have very satisfied clients. Despite me not being a fan of with profits, they are a good provider and turn in good returns for a product with limited levels of guarantees.

alared

Millions of savers with endowments, bonds and pensions have been warned that maturity payouts will be slashed



From yesterday`s Times:

http://www.timesonline.co.uk/tol/money/insurance/article5458658.ece

No one in their right minds would buy a financial product in this climate unless they want to lose a lot of money.:mad: :mad:

alared

dunstonh wrote: »

Values have fallen as you would expect but Pru have tended to keep the terminal bonus mostly in place but impose the MVR.

If you want your money out be prepared to lose 20% of your policy`s value is what the above means.
These products are a "busted flush" and should really be withdrawn for sale.
People should check their policy`s small print and get their dough out when the MVR doesn`t apply,such as the ten year anniversary.

dunstonh

If you want your money out be prepared to lose 20% of your policy`s value is what the above means.

And what is wrong with that?

These products are a "busted flush" and should really be withdrawn for sale.

Apart from the fact they are quite successful for a lot of people who are very pleased with them. So, why should they lose out because you have a chip on your shoulder about NU?

alared

No chip on my shoulder about NU and as I`ve said before come Aug 2010, on the ten year anniversary of my policy,I`ll be getting all my money out with no MVR imposed,whether they`ve paid out any re distribution or not.

If they are going to pay the orphan funds
Pay them and stop dithering about
It`s been going on for four years and they are losing credibility