# Royal Liver policy - to surrender or not?



## Marge (19 Mar 2009)

Hi there, 

I started a Royal Liver with profits endowment savings policy back in Nov 1999.. It is a 15 year policy. I can honesty say that I had no idea what I was signing up to - a family member was working for them and said it was a good idea, so I thought why not. Daft I know, but was in early 20s and totally clueless.

Anyway, I have been paying EUR 63.49 (equiv. of 50 punts) per month since then. That 761.88 pa for 9 years 5 months   - Total of 7174.37 paid in so far.

I noticed that the bonus rates for the last few years have been woeful, 1%, 1.25% for the last 2.
Also, worryingingly, the Sum Assurred total on my last statement was 
EUR 10,208 which will be less that the total I invest at date of expiry. (I contacted RL for more information on this and got 6 pages of policy Ts & Cs in the post, none of which really clarify this.)

I also contacted Royal Liver and asked about cancelling the policy. They quoted a surrender value of EUR 5,800, so significantly less than I have paid in.

I am at a loss as to whether to cut my losses and re-invest the surrendered amount elsewhere with better interest or whether I should keep paying in for the next 4.5 years. What do people think?

Thanks in advance,

Marge


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## redstar (19 Mar 2009)

These type of policies usually have a Terminal Bonus added to the Sum Assured if you let the policy run the full 15 years. The Terminal Bonus can be quite high ie 50% -> 100%, sometimes more, of the Sum Assured.

If you cancel now, you will lose out on the terminal bonus.

I had a RL policy mature a few years ago and the final Sum Assured was Euro12000. I actually got 18,000 when the Terminal Bonus was added. I put in about 6500 over the 15yr term.

However, the annual bonus rates were about 3 to 5 %, rather than the 1 - 1.5% you are getting now.


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## Armada (19 Mar 2009)

I have a policy about to mature. I had a single lump sum investment for ten years . It was £3000 now €3808.

Only yesterday I received notice from them that it is now worth €4900 with a terminal bonus due to be added. 

I have had a few similiar policies which matured with Royal Liver in the last few months. The terminal bonus was about 5% or less on much higher investment amounts and some on 15 year terms.... so I feel I will do well to get €5k from this one.

The policy will mature in April.


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## Sumatra (19 Mar 2009)

Marge, phone Royal Liver and ask them if your policy has a guaranteed surrender date and also ask them what is the maturity date. Given projected figures now for each of these dates and again close to these dates will enable you to consider your options. I wouldn't do anything in between these dates.


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## Marge (20 Mar 2009)

thanks for your replies guys. I will contact RL again today armed with these questions and see what they say.

Cheers, 

Marge


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## Happy Girl (20 Mar 2009)

I also have a policy (10yr lump sum investment) with Royal Liver maturing next month. I have just contacted them to enquire about the terminal bonus on this and I have been informed that Royal Liver no longer pay a terminal bonus on any policies with a life of less than 22years.


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## oopsbuddy (20 Mar 2009)

Happy Girl said:


> I also have a policy (10yr lump sum investment) with Royal Liver maturing next month. I have just contacted them to enquire about the terminal bonus on this and I have been informed that Royal Liver no longer pay a terminal bonus on any policies with a life of less than 22years.



If you signed a contract with RL which stated that a terminal bonus would be paid at maturity, I'd be demanding clarification in writing. Don't necessarily believe what you're told over the phone; that might apply only to NEW policies.


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## Happy Girl (20 Mar 2009)

oopsbuddy said:


> If you signed a contract with RL which stated that a terminal bonus would be paid at maturity, I'd be demanding clarification in writing. Don't necessarily believe what you're told over the phone; that might apply only to NEW policies.


 
Policy states "_Terminal Bonus - This is an additional bonus paid to reflect the overall performance of the plan at the time the plan is matured, cashed in or on the death of the life assured. A terminal bonus is not guaranteed and may be reviewed at any time". _So I guess I just grin and bear it.


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## ondarack (23 Feb 2010)

I took out a with profits endowment savings policy 4 years ago. I have been unemployed for the past year and I was thinking of cashing in. I have invested about 4800 so far and when I contacted royal liver they told me that the surrender value is only 2700. Even though it is a substantial loss I feel I have no option but to surrender. Any advice?


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## DublinCeltic (1 Aug 2010)

I also have a with profit policy with royal liver, it is due to mature in 2016 but i'm thinking of cashing it in.
I have read through my policy details and if i do cash in now i will receive 99% of the value.
I take it this will just be the sum assured and not include any bonuses earned ?Does anyone also know how long the whole process to surrender it takes ?

Thanks


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## godthe (24 Aug 2010)

*RL with profits low cost endowment life policy*

Apologies for jumping in on someone elses post but i too have a query about a Royal Liver Joint low cost endowment policy
I took it out in 1999 and the maturity date is 2015, the monthly premium is €109.96. At end 2009 the total sum assured was €20526 with a guaranteed min death benefit of €25395. The bonuses over the last few years have been very little with no bonus at all for 2009.
I rang them today and i was quoted a surrender value of €12318 and I have paid premiums of €12975.
I am wondering if I would be better off surrendering this policy and taking out a joint term life policy for 10 yrs at approx. €77 per month and investing the surrender value of €12318 in a 5.5yr Post Office account.
I would be grateful for any advice as I am very poor at this type of thing


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## godthe (26 Aug 2010)

Can anyone help


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