Paying over the odds
Article Abstract:
The United Kingdom Institute of actuaries has written to the Personal Investment Authority (PIA) arguing that prices charged for second-hand endowment policies are too high. This market has increased since holders of endownment policies have realised they can obtain a better price by selling to specialist traders than by cashing in policies early. Investors have also bought these policies hoping to obtain a bonus from a conversion of the company issuing the policy to a public company. Some market makers have reduced prices because annual bonuses on policies have fallen. The PIA is to review this market.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
The 10bn pounds sterling annuity timebomb
Article Abstract:
UK life insurance companies are likely to find it increasingly difficult to finance their annuity guarantees as gilt yields fall to record lows and people live longer. Some policyholders are unaware that they can insist on the guarantees, and life insurance concerns do little to publicize this fact. This is in turn creating tension between life insurers and the government, which has warned that the annuity guarantee problem must not be permitted to have a negative impact on the benefits policyholders can reasonably expect to receive from policies.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Don't let your endowment become a liability
Article Abstract:
Unietd Kingdom endowment insurance for repaying mortgages earned commission for salesmen in the 1980s when the projected returns were too optimistic for many of these products. This has led to a problem in the 1990s that policies may not accumulate enough to pay the mortgage. Actual charges have been higher than estimated, and investment growth has been lower. Policyholders should check with their insurer to see if they will accumulate the sum needed to repay their mortgage, and seek to repay any shortfall through an additional saving scheme.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Wait for the calm to judge the storm. Women lose up to 10bn pounds sterling under Labour
- Abstracts: Facing up to the past. The queen of seduction
- Abstracts: BT and MCI rethink terms of 18bn pounds sterling merger. Paper tiger. Rival bid shoots down 13bn pounds sterling BT/MCI deal
- Abstracts: Government commits 300m pounds sterling to create 30,000 childcare clubs. What children really fear: their parents fighting
- Abstracts: Why the world is not threatened by deflation. Are the central banks risking global deflation? Plague of overinvestment is restricted to Asia