View more on these topics

What value is an illustration?

In 1978, a friend effected a 25-year low-cost Standard Life with-profits endowment policy at a monthly premium of £16.52.

This month, the policy matures at £18,123, an investment yield of 9 per cent free of tax, ignoring the premium tax relief.

In February 2003, Standard gave written confirmation of “illustrative maturity values” as:

@ 4% pa return £14,500

@ 8% return £14,900

The £18,123 amount is 22 per cent higher than even the 8 per cent projection.

Standard clearly cannot give anything near an accurate return even five months from a maturity date. What belief should be placed on current Standard mortgage endowment policy illustrative maturity values?

MP Ward

Chartered insurance broker,

MPW (Carlisle), Carlisle

Recommended

Majority of consumers do not understand financial products – Unisys

Nearly two-thirds of consumers find themselves frustrated by financial products according to research from information technology provider Unisys.Sixty-three per cent say they do not understand financial products or do not like choosing between them, with a further 40 per cent admitting they have never had a financial health check.Unisys head of global financial services Tony […]

A consumer&#39s view

A remark by outgoing FSA chairman Sir Howard Davies will resonate with all those who have to deal with consumer complaints.Referring to the increasing number of complaints about missold endowments, he warned that the endowment review is overwhelmed by spurious claims due to the UK&#39s growing compensation culture. Complaints have been made by consumers even […]

Surge in online mortgage applications

Most intermediaries submit mortgage cases online according to Birmingham Midshires latest research. Nearly eight out of ten of the advisers the lender questioned, 77 per cent, say they submit, track and progress to completion at least some of their cases online.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com