Help required selling an endowment

dbs

I am trying to sell my endowment but some companies will only trade with profit policies.

I have managed to find some companies on the internet that will consider a unitlinked with profits fund but when I try to fill out the online form I have to declare the bonuses in cash terms attached to the plan from the start date and cannot omit this information.

I have contacted Axa equity & Law who state because the policy is a unitlinked with profit fund they cannot give that information.

Most of the companies are 0845 telephone numbers so will cost a fortune to keep telephoning these companies instead giving the information online.

Can anyone recommend a company who can sell a unitlinked with profit policy? or give any other advice.

EdInvestor

Can anyone recommend a company who can sell a unitlinked with profit policy?

Basically no - they are not marketable any more

or give any other advice.

If the policy is with Standard Life, hold on for the demutualisation next year when you should get a windfall.

Otherwise
What company is it with?
What is the surrender value?
The monthly premium and the maturity date?
Is there any terminal bonus within the surrender value?

dbs

Axa Equity & Law
Surrender value £9715.56 includes £220.46 terminal bonus and £254.13 reorganisation bonus (whatever that is?).
£33.15 per month(increased to this payment in 1995 from £27.50)
Maturity date 4/10/2010
Guaranteed sum £11122
Last yearly statement 4/10/2004 bonuses made 3.25% per annum
Guaranteed bonus of 3% per annum
Forecast @ 4% £14000
Forecast @ 8% £17000 (last time it made 8% in 4/10/1993)
Target amount £20000
Compensation from FOS £2700 already paid this off the £20000 loan so £17300 left to pay

When I complain to Britannia one of the reasons given for rejecting my complaint was; because it was a with profits fund it was not a risky investment this is why I was trying to sell the policy only to find it is a unitlinked with profits fund.
They call it a low cost home buyers plan.

dunstonh

its probably not a unit linked with profits but a unitised with profits.

In the scheme of things, i would rather be on a unitised with profits than a conventional with profits plan. You arent tied to legacy issues as much and you benefit from buying when the market is lower.

EdInvestor

DBS

dbs wrote:

Guaranteed bonus of 3% per annum

I think this is probably one to keep and the guaranteed bonus is the reason why.If you cashed it in and put the surrender value in the bank@4% and paid in the premiums as well you'd get just over 14k.But interest rates are coiming down and taking tax into consideration, 3% is probably the best you'll get for a while. If you keep it on you'll make at least that, possibly more, and get free life assurance.

£254.13 reorganisation bonus (whatever that is?).

This is a little windfall.Around 5 years ago AXA decided to reorganise its WP fund, basically to give some of the money to the shareholders.Policyholders had to vote in favour of this, so they were also given a windfall bonus to encourage them to approve the deal.The Consumers' Association thought this was a total ripoff and challenged it court.They failed, but the issue came up at about the same time as the collapse of Equitable Life, so it got more attention than you might otherwise expect and people started to get worried about WP funds (quite rightly as everyone later found out)