Help! My bonus has been SWiped!!

  • Story by: Janet Walford
  • Magazine: FTAdviser
  • Published Tuesday , July 22, 2008

With profits policies have had a bad press over recent years, and at the heart of much policyholder dissatisfaction is perception that they are no longer good value.

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At Money Management we are nowadays regularly seeing examples of insurance companies paying no reversionary bonuses at all for years at a time on some policies.

I have details of one such policy, an FSAVC with Scottish Widows, taken out in 1992. It has a guaranteed annuity rate of 9 per cent and gross premiums of £100 pm. Benefits are due to be taken in September this year.

BUT, no reversionary bonuses have been added to this plan since 2002. So have the £7,000+ premiums paid since then vanished into a black hole?

"When no regular bonus is being added, this does not mean that the value of the plan is not growing," claimed Scottish Widows.

To read the rest of the latest Walford's World blog (to to have your say) click here.

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