Norwich Union - Reattribution

Geoffo_M

alared wrote: »

Norwich Union's with-profits policyholders are unlikely to receive
their cash from the reattribution of its inherited estate until 2010.

http://www.ifaonline.co.uk/public/showPage.html?page=ifa2006_articleimport&tempPageName=840525

Yet more delays :mad:

I'm like you in that my 10 year anniversary falls in August of next year. I'm a bit unclear exactly what we get and what we don't get. They first talked of 3 payments made in January 2008, 2009 and 2010 (I think those were the dates). Do we still receive those? I think it amounted to about 10% of our policy values. Then there was an additional bonus that carved up the balance of the inherited estate. Is that the bit that they've changed their mind about. It's all a bit of a mess, but I think we'd be mugs not to get out on the 10th anniversary - but what would we missing out on?

mike88

Mine 10 yrs is up in July so can get out with no penalty. I cashed most of it in a few years ago so only have about £6500 left.

I understand from NU that I can keep it going but am unsure whether it is worth hanging on for the reattribution. What would you do in my position?

Geoffo_M

mike88 wrote: »

Mine 10 yrs is up in July so can get out with no penalty. I cashed most of it in a few years ago so only have about £6500 left.

I understand from NU that I can keep it going but am unsure whether it is worth hanging on for the reattribution. What would you do in my position?

We could both benefit from an expert opinion. Ive got £30k, and with a current MVA around 20%, means I would be sacrificing around 6k by not getting out on the 10th anniversary. Less, of course, any benefits that I would be losing by getting out early. Looks like a no-brainer doesn't it Mike, unless their MVA reduces rapidly in the next year. (if yours is this July, then get out mate)

mike88

I received a telephone call from Norwich Union about 2 months ago and was assured that when 10 years is up it would be possible to get out with no MVA applied. If I decide to keep the policy going an MVA would be applied but at a much lower level than previously. Surrender in July would mean losing eligibility to the reattribution payment.

That figure of 20% from Geoffo looks excessively high and surely should not apply after a policy has been in existence for 10 years. These policies are as clear as mud and the surrender arrangements are even more unclear when the reattribution dimension is taken into account. Help!

alared

Mike88 & Geoffo M

First of all you won`t get an "expert" opinion from our resident "financial expert" because he doesn`t like people cashing in their policies fo obvious reasons.

NU added UNITS to your policies in Dec 08 and Jan 09 to the value of a % of your policy.
The third and final payment of UNITS is in Jan 2010.

To find out how much was added phone NU on 0800 068 6800

If I was in your position Mike88 I would act immediately and contact NU in writing telling them you want to cash-in this policy in July.
Chase them up by phone shortly afterwards to make sure they are going to do it.
You only have a limited "window" (time-frame) to cash-in without penalty.
See this http://www.timesonline.co.uk/tol/money/investment/article5779428.ece

GeoffoM
You`re in the exact same position as me and I`ve made clear plenty of times my intention to cash-in on the 10th annisversary no matter what.

This whole fiasco has been dragged out by NU for well over 4 years and no CASH payment has been forthcoming so far.
The latest date is 2010 but of course the longer it goes on the less you`re likely to get.

To use that common expression "at the end of the day" you both have to make up your own minds because it`s YOUR MONEY.

dunstonh

That figure of 20% from Geoffo looks excessively high and surely should not apply after a policy has been in existence for 10 years.

It is quite possible. Remember that it would have been taken out before the tech stocks crash. Just as it recovered along comes the credit crunch. A higher MVR with the opportunity to get out MVR free could be worth taking even if you lose the payout. The payout is likely to be in the hundreds. A high MVR is likely to be in the thousands.

First of all you won`t get an "expert" opinion from our resident "financial expert" because he doesn`t like people cashing in their policies fo obvious reasons.

What obvious reasons would I have for people I dont even know wanting to cash in their plans or not?

alared

dunstonh wrote: »

What obvious reasons would I have for people I dont even know wanting to cash in their plans or not?

So you do consider yourself a "financial expert" then? :rotfl:

dunstonh

alared wrote: »

So you do consider yourself a "financial expert" then? :rotfl:

It was clear who your comments were aimed at.

You certainly werent talking about yourself.

alared

I offered the two posters the facts and options,I noticed you dodged the issue (I suspect you`d charge for advice) and as usual tried to make out that the MVR wouldn`t be anywhere near 20%.

I`m pretty sure the two posters can make up their own minds on the facts I`ve given.

Geoffo_M

alared wrote: »

So you do consider yourself a "financial expert" then? :rotfl:

I consider dunstonh to be a 'fiancial expert' and welcome his views on this board.