Scottish Amicable Endowment - Payment Of Further Bonus

AngelaD63

Can anyone tell me if I am entitled to information held on a policy I used to own,I am after the amount I sold my policy for in 1999,no other information and yet Prudential will not tell me,they have sent several letters over a year saying I dont own the policy anymore and will not discuss,what other action can I take,are they right? I am trying to claim an endowment misselling

hansi

I think they are probably right. If you sold the policy, then it's no longer your policy. So how can you claim for mis-selling someones else's policy?

Froggitt

bluefrew2 wrote: »

It was a year ago when I got the same information as yourselves from the Pru concerning my terminal bonus. I registered a complaint against them and then took it to the Ombudsman. I'm still waiting for a decision but I must urge you to do the same as myself. We were promised a "further bonus" when the policy matured as part of the contract when the Pru took over Scot Am and this was laid before the Scottish Courts. The Pru cannot change this contract unilaterally. Even if the Ombudsman aligns with the Pru it is still my intention to go to the Small Claims Court and fight it out there.

Another pounds 530 million will be invested in the stock market. This will be used to boost final bonuses when policies pay out

Did you ask them what happened to the £530m?

Froggitt

hansi wrote: »

I looked up the information I received about the Pru's takeover of SA which I kept. I received a fixed cash payment in 1996 and was told that a Special Added Bonus of x pounds would be added to the final payout. So i guess, Ive received it?

everyone who qualifies will get a pounds 250 lump sum soon after the deal goes through.

A second cash payment will be linked to how much people have invested. The handouts - paid at the same time - will total pounds 600 million. Another pounds 470 million will be dished out as special bonuses increasing the value of savings policies.

Another pounds 530 million will be invested in the stock market. This will be used to boost final bonuses when policies pay out

There is a further bonus in addition to the Special Bonus.

thebull

To add to my origional post do you think it would be wise to write to the Pru and ask them how the ex scotish amicable fund is doing (ie the 250million )and what sort of payment I might get on my policy maturing .
At least it will get me on there file with regards to this issue.
Many thanks to all for your help and advice up to now .

thebull

:T my mistake £530 million fund

AngelaD63

hansi wrote: »

I think they are probably right. If you sold the policy, then it's no longer your policy. So how can you claim for mis-selling someones else's policy?

Well when I bought the policy I was very young,bought the house with my Dad who was 68 at the time(and we were given a morgage for 25 years despite his age),we signed it in both names but when policycame back it was in my name only,never thought to query it but my Dad died two years later,my point is that I was mis sold the policy in 1989,as I was very badly advised,I kept it running for 10 years so have paid a good bit into it I am going down a different road as the company involved(the agent) went bust just to add to the fun,so I think I am entitled to info for the time I held the policy,a bit tricky I know but has anyone else been in this situation?

Froggitt

http://www.telegraph.co.uk/finance/personalfinance/investing/8347401/Prudential-holds-bonus-rates-for-with-profits-customers.html

Annual bonuses for all with-profits funds have been frozen at 3pc, this includes the prudence bond and personal pensions policy, while the unitised corporate pensions policy will be held at 3.25pc

The 25-year term mortgage endowment policies from Prudential and Scottish Amicable have achieved the strongest returns, with the Prudential product increasing in value by 10pc and the Scottish Amicable product returning 12.3oc over the year.

The insurer has reported that an estimated £2.2bn has been added to with-profits policy values, split equally between annual bonus and final bonus payments – an increase of 10pc.

What does this mean in English? Whats the impact on my payout later this year?

Froggitt

http://citywire.co.uk/new-model-adviser/prudential-freezes-annual-bonus-for-with-profits-funds/a474514

Prudential has frozen its annual bonus rate for its four million with-profits policyholders but final bonuses have risen by up to 10%.
Prudential has fixed annual bonuses for its £75 billion of with-profits funds at 3% for bond investors and 3.25% for unitised corporate pension policyholders. The final bonus rate for Prudential with-profits bond and pension policyholders have risen over the year by between 6% and 10%

Prudential estimates around 35% of consumers who invested in its endowment products are now on track to pay back the value of their mortgage. The insurer estimates that 4,000 of the 16,000 customers whose endowment will mature in 2012 will have a shortfall between the value of their investment and mortgage. The average shortfall would be around £1,700 according to the insurer.

I dont get it......assuming these are all 25 year policies, why are 4000 of them different to the remaining 12,000? Scot Am making up the 4,000 in credit?

And how come only last month, I got a red letter with a shortfall estimated at £4,000 or so (on a typical £50 a month policy)?

roddun

We have just been told what our payout will be after 25 years of paying £43.84 per month, payment date 14th April 2011. After removing the life-insurance component, that was £6.68, I have effectively been investing £37.16 per month for 25 years.

I will get £33743.98 (original target £34000, just £256.02 shortfall!):beer:
Take heart, I have had red letters for at least the last three years and when I checked just one month ago the expected shortfall was going to be £2600 - things are obviously improving rapidly!:T

The effective return on investment was 7.993% p.a., I was originally quoted a likely return of 8% when I took out the policy in April 1986.

I actually feel sorry for the people who where persuaded to give up their endowment policies. They might not hit the original target - but they have still been a pretty good long term investment.