Hi there
I was hoping that someone may help.
I have decided to surrender a unit linked endowment policy as I need to use the money and it hasn't done as well as hoped. I have held the plan 12 years.
The special provisions of the plan are that once the plan has been held for more than 10 years (and I quote).. ''you will be entitled to a bonus, on maturity or surrender, equivalent to 0.5% of the fund value for every complete year the plan is in force.'' and it gives an example of a 25 year fund receiving a 12.5% bonus on the fund value at the end.
I phoned for a surrender value and asked about the bonus. They said that a 0.5% bonus was being added to the fund at the end of each year.
I have always checked on the balance and was expecting a 6% bonus on the surrender value. I was not aware of any 0.5% being added annually and there is no mention of this in the policy.
Also 0.5% added annually is not the same as 6% on the fund value at surrender.
How do I get round to making sure that I am not being ripped off as that is how it feels!
Any advice appreciated.
I was hoping that someone may help.
I have decided to surrender a unit linked endowment policy as I need to use the money and it hasn't done as well as hoped. I have held the plan 12 years.
The special provisions of the plan are that once the plan has been held for more than 10 years (and I quote).. ''you will be entitled to a bonus, on maturity or surrender, equivalent to 0.5% of the fund value for every complete year the plan is in force.'' and it gives an example of a 25 year fund receiving a 12.5% bonus on the fund value at the end.
I phoned for a surrender value and asked about the bonus. They said that a 0.5% bonus was being added to the fund at the end of each year.
I have always checked on the balance and was expecting a 6% bonus on the surrender value. I was not aware of any 0.5% being added annually and there is no mention of this in the policy.
Also 0.5% added annually is not the same as 6% on the fund value at surrender.
How do I get round to making sure that I am not being ripped off as that is how it feels!
Any advice appreciated.