Policy bonuses fall, despite surging stock markets
Article Abstract:
United Kingdom life insurance companies are likely to reduce annual bonus rates for endowment policies with-profits, in 1998. These rates have already been reduced in the 1990s, and some analysts argue that they should not be reduced further. More emphasis is being placed on terminal bonuses, but some savers who plan to repay mortgages with endowment policies are increasing payments in case the terminal bonuses are not enough. Life companies argue that the return on the policy is the important issue, not whether it comes from terminal or annual bonuses.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Second-hand market not such a bargain
Article Abstract:
UK second-hand endowment policies have risen in price of a number of reasons such as speculative demand in the hope of windfalls that could be given if insurers demutualise. This has meant that expected returns and yields have dropped and investors may pay too much. They can buy directly or through funds. Not all private investors are knowledgeable enough to assess value in this market. There is a difference of opinion as to whether bonuses are likely to be reduced. They have already been cut in the early 1990s.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Tapping into Teps
Article Abstract:
United Kingdom investors with endowment policies may be forced to give them up, and this could create problems because the amount obtained is less than if the policy is held to maturity. Investors can enquire about surrender values, and then see what price a dealer in endowment policies would pay them. They have to hold policies that are at least seven-years-old, and they can only sell with-profits policies, not the unit-linked variety. Prices for policies could fall after criticisms thatthey are too high.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Penny share warning. London stock market: dealing costs to fall. New issues: last orders
- Abstracts: Union des Assurances de Paris. Taking a limited bet on Lloyd's. A problem shared...
- Abstracts: Topsy turvey,(Chinese stock markets) Hong Kong/China: after Deng. Chinese puzzle
- Abstracts: Make good use of this breathing space. Tax - ways to be top of the form
- Abstracts: If the benchmark fits, wear it? Trading places