Sunday, September 19, 2004

More Misery

The 350,000 of you who hold endowment policies with Scottish Life, will be feeling even worse about your underperforming policies.

Scottish Life have cut their payouts on their "with profits" polices, for the second time this year.

The polices are now so, I will use an accounting term here, "crappy" that they are not even keeping pace with inflation.

The returns on the Scottish Life polices are a "staggering" 1.1% (inflation is around 2.5%), the FTSE has grown by 6% since January 2004.

Well done lads, are you proud of your product?

Now, Scottish Life (and indeed all the other "professional" life assurance companies) claim that the cuts are to "smooth" the returns on the policies; as a result of the falls in the FTSE between 2000 and 2001.

I would like to ask the following:

Aside from those two years, the FTSE has performed quite well over the past decade (allegedly the longest "bull run" in living memory); where the hell has the money gone?????

No comments:

Post a Comment