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Decisions are based on &#39false&#39 return figures

On April 17, Standard Life issued a with-profits endowment policy maturity value quotation of £17,200 at 5 per cent a year return and £17,600 at 10 per cent a year return.

On October 13, I received maturity papers showing an actual value of £18,984 for the maturity date of November 24.

How many policyholders cash or sell a with-profits policy without being aware that the "5 per cent" and "10 per cent" a year return figures set by the PIA can be "false"?

Another client is determined to take a £22,000 cash value under a with-profits Scottish Widows&#39 policy which matures two years hence. Scottish Widows&#39 maturity values will need to crash over the next 24 months to give an actual result which is less than the "10 per cent" a year quotation figure, that is, a similar policy maturity now indicates that the actual maturity value two years hence will be much more than the top "10 per cent" a year quotation.

Money Marketing readers can tactfully handle the problem but many policyholders on their own must make bad decisions based on "false" information.

M P Ward

Cumbria Insurance Brokers,

Carlisle

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