With-Profits Endowment - Maturity Value Calculator
Added: (Tue Feb 21 2006)
Pressbox (Press Release) -
Online Relief for
With-Profits Policyholders and IFAs
Endowment Shortfall? How much is it really going to be?
Endowmentcheck.com offers a unique online valuation service allowing policyholders and IFAs to check the real maturity value of their policies.
In the light of ever increasing worries about the performance of endowments and the uncertainty of whether policies will pay the target amount as originally planned, we have launched endowmentcheck.com for endowment with-profits policyholders and IFAs.
· We are the first company to provide a clear and accurate independent policy maturity valuation based on up-to-date bonus rates as used by life offices.
· At the moment policyholders have to rely entirely on the projection letters issued by their life companies. However, those maturity value projections are normally based on three growth rate scenarios: 4%, 6% and 8% (as stipulated by the FSA), and not on actual current bonus rates, which would apply if the policy were to mature today.
· We believe that a projection based on actual current bonus rates is a far more useful calculation than one based on hypothetical scenarios, which, for the majority of policyholders and IFAs does not offer a clear enough answer of what the maturity is likely to be.
· We give our website user the opportunity to check whether or not their policy is on track, or if they really need to top up their policy, as it is often suggested by the life company.
· We provide the basis of whether to hold on to a policy, surrender or sell it on the open market.
· A sensitivity table will help to illustrate the effect a change of bonus rates has on the maturity.
· The site will also provide general information about endowments, useful addresses and telephone numbers and will allow the visitor to establish a policy performance record.
Founder and Managing Director of EndowmentCheck Ltd., Ernst Riess, has been an IFA for more than 20 years, providing Endowment Portfolio Management Services since 1990 mainly to international clients who have bought UK Traded Endowment Policies. He has been instrumental in raising the popularity of UK Traded Endowment Policies, especially in continental Europe.
Ernst Riess, Managing Director, adds:
No investor would envisage buying a policy on the Traded Endowment Market unless he knew what the maturity value, based on current bonus rates, is going to be. It is not enough to send out bonus declarations and leaving their interpretation to the client. Investors want to know how their policies are performing and how changes in bonus rates affect the maturity of their policies.
Underperforming policies cause great concern for policyholders and IFAs. Life Office Projection letters lack clarity and can cause even more uncertainty of what the future might hold in stock. Relationships between policyholders and their IFAs turn sour all too often because of the threat of mis-selling claims.
EC will always notify subscribers to the website of any changes in bonus rates as and when they occur, giving the policyholder the possibility to re-calculate the maturity value of his policy. This is a great way to stay in touch with our clients and there are no nasty surprises in store when it comes to maturity.
With more than 3500 up to date bonus rates from all major UK life companies, which are constantly updated, we can work out the future maturity value of a policy within seconds, making our website an essential tool for the online user.
Quote: We use EC regularly to cross check Projection letters from life offices. ECs comprehensive valuation report saves us time and makes it much easier for us when talking to clients about the performance of their policies. T. Dunsdon, Business Insurance Services
As the site is independent and not funded through advertising, we have to ask for a small contribution of £4.99 or £12.99 depending on the service required.
Our website is fully secure and compliant.