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' policy which matures two years hence. Scottish Widows' 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,