Abbey Life Covermaster schemes query

yoghurt

My Dad has taken out 3 Life Assurance plans at different times, all with Abbey Life, under their Covermaster schemes.He is 78 and Mum is 77-it is payable when they both die (God sounds horrible typing this!)


Basically he has been told that, because they are unit linked the value is now less than he planned for when they were taken out-he was originally expecting a total of £80k but are now worth £57415.

He has been contacted by a rep from Abbey Life (by phone) giving him the surrender value total of £21,830 and he wants to know if these look realistic so he can decide whether to cash them in and invest the money elsewhere. He is concerned that if he continues to pay the premiums and the policy values depreciate further

The first policy has had 24 annual payments x £341.85=£8204 paid in, 2nd 14 x £261.53=£3661 and the 3rd 10 x £906.50=£9060.50, a total of £20,925

The 3rd policy has the next payment due on 4/4/08 so he is keen to find out before then if possible

My gut feel is for him to take the surrender value and invest elsewhere (for example some ISAs) but any advice would be much appreciated

Many thanks

dunstonh

He has been contacted by a rep from Abbey Life (by phone) giving him the surrender value total of £21,830 and he wants to know if these look realistic so he can decide whether to cash them in and invest the money elsewhere. He is concerned that if he continues to pay the premiums and the policy values depreciate further

There are not investments. They are whole of life assurance plans with an investment fund element to help pay for future premiums.

You are asking if its work cashing them in for £21830 or keeping them for whole of life when they will pay out £57415. If your dad thinks he can turn £21830 into £57415 then go for it.

Is there an age when premiums cease but benefits are retained? (quite a common thing with whole of life plans)

He has been contacted by a rep from Abbey Life

Abbey Life dont have any reps. They closed for new business many years ago.

yoghurt

Thank you dunstonh for responding

My Dad is worried that the £57k will be be worth even less in the near future even if he continues paying £18k a year into it

I just spoke to him and he has decided to cash it in and invest elsewhere

I guess if the guy who called was not a rep he must be some kind of agent for Abbey Life?-I did say to Dad to get everything in writing

Cheers