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Article: With profits 'get out of jail free card' found.
- Article from:
- Financial Advisor
- Article date:
- May 28, 2009
- Author:
CopyrightCOPYRIGHT 2009 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Emma Ann Hughes & Simon Read
Hundreds of thousands of people trapped in under-performing with profits policies could escape through a little-known policy loophole, according to a new report.
Matthew Morris, director of website www.exitwith-profits.co.uk, has put together a report focused on "spot guarantees", which allow an early surrender of a plan on a pre-determined date with a guarantee applying that the investor's value can not be reduced by the insurer.
On any other date the value may be reduced and Mr Morris said it was common for insurers to reduce the value by, on average, 13 to 15 per cent.
According to Mr Morris' ...