Underpaid mature Life assurance policy

Yvonne_S

Hi

We have been paying into a life assurance policy with profits for the last 10 years and it matured the end of January.
My husband and myself we looking forward to a nice little sum to invest.
We recieved the cheque this morning only to discover that the sum we have recieved is £70.00 less than what we have paid in over the last 10 years.
The monthly amount we were paying was not extortionate but what we could afford 10 years ago ( with small children growing up and nursery fees )at the time we took out the policy we were told to expect in the region of a stated sum of which we are approximately £1000.00 down.
We understand the ups and downs in the economic climate but surely not to this level.
To add insult to injury, this is the second time this has happened to us with the same insurance company, CIS. 5 years ago we had another assurance policy mature. We had paid into this one for 15 years. Again not a large amount but we were told to expect approximately £3000.00 more than what we recieved. They blamed this on 9/11 !.
We had this checked out and they vowed the amount was correct.
I have lodged a complaint this morning and they have stated that someone will get back to me within 5 working days.
Surely this one cannot be blamed on 9/11 or the recent dip in the market.
We feel as though we have been well and truly had.
Our main endowment has only got another 4 years to run with the same company. They say we are o.k and on track but now we have our doubts. Are these telling the truth !!!.
Has anyone else been in a similar situation.
Sorry for being so long but to say i am cross is an understatement
Thank you.

Murdina

I've taken out a few insurance policies over the years and only the ones I took out in the 1980s were any good. I did one from I think about 1994 to 2004 (I might be a year or two out). It was a total waste of money - I would have got a much better return in the building society. These produces have long since stopped being worthwhile in my view.

With the remaining one, ask for a forecast and also what you would get if you took it now. Do some sums and see if it is worth stopping now, since you may be able to invest the money more effectively yourself for the remaining 4 years.

dunstonh

We recieved the cheque this morning only to discover that the sum we have recieved is £70.00 less than what we have paid in over the last 10 years.

That sounds about right for the last of the 10 year endowments.

I have lodged a complaint this morning and they have stated that someone will get back to me within 5 working days.

It will probably be rejected. Investment returns are not something that you can complain about.

Surely this one cannot be blamed on 9/11 or the recent dip in the market.

9/11 and the tech stocks crash are the bulk of the reason plus revised accountancy standards, increased solvency requirements, two years of poor returns on fixed interest funds and property suffering major declines in 2007 and CIS being generally naff in the first place and buying an expensive product that was on its last legs by 1998. Its not the concept of investing that was wrong. Its where you invested it that was.

Our main endowment has only got another 4 years to run with the same company. They say we are o.k and on track but now we have our doubts. Are these telling the truth !!!.

You get the projections. What do they say?

Has anyone else been in a similar situation.

Yes. Quite a lot.

Sorry for being so long but to say i am cross is an understatement

Harsh lesson but that will teach you to buy products from a tied insurance company salesforce.

Yvonne_S

Sorry to have come on here to ask a question but i only sought advice not criticism !!!!.
Thanks !!!

Yvonne_S

Thank You Murdina for your reply.

Retired_I.F.A.

Yvonne_S wrote: »

Sorry to have come on here to ask a question but i only sought advice not criticism !!!!.
Thanks !!!

Barring Dunstonh's last statement which is a bit unfair on the co-op who were at one time in the premier league of payouts fo pension plans albeit when Dunstonh was still in the junior school. He's spot on. Unfortunately the truth is not what you really wanted to hear.

dunstonh

Retired_I.F.A. wrote: »

Barring Dunstonh's last statement which is a bit unfair on the co-op who were at one time in the premier league of payouts fo pension plans albeit when Dunstonh was still in the junior school. He's spot on. Unfortunately the truth is not what you really wanted to hear.

We are talking 98 when this was taken out. The writing was already on wall for these at that point. That was the more or less that last year the old home service companies issued them. If we go back further in time then yes, they had a good period. Although funnily enough I have done quite a few CIS pension transfers in recent years as they are stuck on zero bonus and the bonus rate since 1988 only went in one direction.... down.

It would have been hard for an IFA to justify an endowment over a PEP/ISA by that time. Tied agents could get away with it because they either didnt have a regular PEP/ISA or it had a £100pm minimum.

Sorry to have come on here to ask a question but i only sought advice not criticism !!!!.

I cannot help it if you dont like the answer. Its factually correct though.

Yvonne_S

Thank you Retired IFA for your reply.
A lesson learned the hard way by us unfortunately.

Yvonne_S

Thank you Dunstonh for your reply too, i agree a harsh lesson learnt but whilst it was not your answer that irritated me it was the attitude in which it was posted.
Thanks again anyway.