Liverpool Victoria has announced that it is making cuts to its with profits policy maturity payouts as a result of the poor investment climate over the last few years. The cuts took effect on 11 August and are between 3-5%.
Our view
An unsurprising move given the investment climate. Investors share of the "profits" at maturity should reflect the actual return made over the investment period.
Investors whose policies mature now will be hit hard, particularly with profits endowment holders who have suffered in the market anyway with endowment shortfalls etc. This can only add to the misery. Expect further cuts from other companies.
If you have a with profits endowment with any company you need to take action now. Review your endowment, telephone the insurance company and get a projection, find out what your shortfall is.
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