Liverpool Vic MVA's on Investment Bond

hansi

Any idea how much their MVA costs on a five year bond maturing in October 2005 to the vakue of 5k?

ManAtHome

Best thing is to contact them - many policies have mva-free anniversaries (5 or 10 years), but dunno about yours. If you still have the original brochure, may be somewhere in the 2-point text..

Nick_C_4

Maybe I'm being daft, but I thought MVAs don't apply on maturity. Or are you talking about withdrawing your money now rather than waiting for October? Either way, it's my understanding that LV aren't applying MVAs at the moment, but I could be wrong. But like ManAtHome says, best to contact them for a surrender quote, then you'll know for sure.

dunstonh

You are correct. There are no MVRs on maturity.

MVRs are penalties on people who withdraw their funds earlier than planned on the contract to protect the other policyholders from loss. A maturity is a contract event.

hansi

Sorry, maybe maturity is the wrong choice of word. It is the Mutual Investment Bond and after five years there is no penalty to withdraw but the T&C's there may be a bonus or an MVA applied but I will ring them. Thanks to all who replied.

hansi

I checked with LV today and, yes, there will be a MVA. They've got you all ways, haven't they? I left the investment for 5 years so there wouldn't be a percentage reduction to pay, and now they hit me with an MVA! Any ideas of how much this could be? Like I have said on many occasions, I would have been better off putting the 5k into a Mini Cash ISA 5 years ago!

Hornet

I called the other day and the current MVR is 19% - I asked if this was published but was told that you need to contact LV to get the latest MVR rate. I was told it had been as high as 30%. I guess it is time to start taking your annual allowance that you're allowed!

ReportInvestor

I'd write in for your own surrender value, hansi. There will be one specifically based on when you took out the bond.

Hornet's suggestion is very sound. Does LivVic allow 5% MVA free annual withdrawals, Hornet?

hansi

I can't do that because I have two policies with 2.5k in each. But there might be another way. If I withdraw it all now, I know I have to pay the 1.5% surrender penalty but will I have to pay the MVA as well?

Hornet

I think the allowance varies - I think if you have the investment bond you can take 7.5% of the initial investment each year - but for others I believe it is 5%.

Hansai - Yes I am sure the reduction will be taken if you take your money now.

dunstonh

MVRs are very much a personal thing based on date you went in mostly. The suggestions to get your own figure are correct because anyone elses is likely to be different to yours.

MVRs are on the decrease. Most of the major providers have removed them now or are very close to doing so. LVFS do not appear to be in that position yet (as much as can be guessed) but if you do not need the money now, then perhaps delaying it a little longer will help the figure to reduce.