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Clients warned to expect nil return in Windsor Life endowment letter

Middlesbrough IFA Joslin Rhodes has revealed what it claims to be the worst ever endowment projection letter, forecasting that its clients will receive absolutely nothing from the Windsor Life plan they set up in 1994.

The clients received the letter last year, projecting that the policy will not return its target of £50,000 at maturity in 2019. The letter says the policy will fail to return anything at any of the 4, 6 or 8 per cent projection rates.

This was the third letter the clients had received and they approached the IFA for advice.

Joslin Rhodes senior financial adviser Neil Parker says the couple, in their mid-30s, took out the Windsor Life policy in 1994, paying monthly premiums of £15.10.

But Windsor Life claims the policy was never intended to repay a mortgage and the letter was sent inappropriately. It says the clients only wanted life cover on its Universal plan and not to cover their mortgage.

Parker says, while there is fault on both sides, Windsor Life must stand up and be counted. The IFA has requested a copy of the original paperwork to find out the projected growth rates.

He says: “I defy anyone to come up with a worse case. Windsor Life&#39s excuse was the clients should have realised that if they were only paying in £15 a month, they would not meet their target. They are quite blasé about it. They had the most amazing response of: &#39It&#39s got naught to do with us.&#39”

Windsor Life assistant executive in administration Paul Parsons says: “The letter was sent out inappropriately. We will explain the situation to the IFA and apologise to the clients.”


Outside edge

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In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.


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