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Re: Endowment shortfall
Thanks P1. Just checking our records, over L & G it actually came to a head nearly 15 years ago not the 10 suggested in my previous post. We were in quite a way with the morgage but I noticed that every year after the first year the reversionary bonus additions were reducing on an ever rapid basis. This whilst the terminal bonus was rising not quite as fast. When I checked the small print it was obvious that they were hedging their bets and not going to pay out the terminal bonuses promised and the reversionary bonus would have been worthless by the end point. They lied to me for a further three years that everything would be OK, eventually I constructed a fairly complex spreadsheet of history and inter related predictions which would have left us at least £13.4K shortfall to clear at the end of term instead of about £18K or so in our pockets. After a lot of acrimonious correspondence with their head office and CEO, it was subjected to "Actuarial" review. These pompous asses finally agreed that my mathematics coincided with their own predictions and offered to buy me out of the policy for one third more than it was worth if I took a straight repayment mortgage with them, which WAS supposed to be transportable without grief. Another lie of course. However we sold up not long after and moved to a cheaper area in a smaller property and had no mortgage for a long time. It was only in this awful bank caused recession that almost broke us completely that we took out a small mortgage over ten years. That was organised by Lloyds TSB via Cheltenham and Gloucester who set it up for us with Platform who are of course underwritten by Britannia.
That runs a couple of years into retirement and they asked how this would be dealt with. I explained that we had some rather small private pensions to help out and as it was only a minority (very) equity in the property they were OK.
Only problems we have had is over providing an original insurance schedule to them each year because I work from home.
regards
Garlok
Thanks P1. Just checking our records, over L & G it actually came to a head nearly 15 years ago not the 10 suggested in my previous post. We were in quite a way with the morgage but I noticed that every year after the first year the reversionary bonus additions were reducing on an ever rapid basis. This whilst the terminal bonus was rising not quite as fast. When I checked the small print it was obvious that they were hedging their bets and not going to pay out the terminal bonuses promised and the reversionary bonus would have been worthless by the end point. They lied to me for a further three years that everything would be OK, eventually I constructed a fairly complex spreadsheet of history and inter related predictions which would have left us at least £13.4K shortfall to clear at the end of term instead of about £18K or so in our pockets. After a lot of acrimonious correspondence with their head office and CEO, it was subjected to "Actuarial" review. These pompous asses finally agreed that my mathematics coincided with their own predictions and offered to buy me out of the policy for one third more than it was worth if I took a straight repayment mortgage with them, which WAS supposed to be transportable without grief. Another lie of course. However we sold up not long after and moved to a cheaper area in a smaller property and had no mortgage for a long time. It was only in this awful bank caused recession that almost broke us completely that we took out a small mortgage over ten years. That was organised by Lloyds TSB via Cheltenham and Gloucester who set it up for us with Platform who are of course underwritten by Britannia.
That runs a couple of years into retirement and they asked how this would be dealt with. I explained that we had some rather small private pensions to help out and as it was only a minority (very) equity in the property they were OK.
Only problems we have had is over providing an original insurance schedule to them each year because I work from home.
regards
Garlok
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