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Over a period of years I took out a few ten-year policies with Friends Provident so that I could eventually receive a lump sum payment virtually every year. The first of these matured in June 1998.
That particular one was for ten years at a constant £10 per month so I paid in a total ... Read review
Advantages: A good payout at the end of the insurance term Disadvantages: You need to be sure you can commit to ten years
...a few ten-year policies with Friends Provident so that I could eventually receive a lump sum payment virtually every year. The first of these matured in June 1998.
That particular one was for ten years at a constant £10 per month so I paid in a total of £1200 over the period of the policy. Each year I got a statement showing the bonus payment for the year and the extra bonus paid on the accrued bonuses from previous years. At the end ... ...guaranteed but companies such as Friends Provident don't use high risk investments so I think we're pretty safe for a good payout.
And there's another advantage for me - this year Friends Provident are demutualising and the members will get a payout! I've missed out on most of the building society ones so I reckon I deserve this one! ... more
When I was in infant school my parents took out a ten-year insurance policy in order that they would receive a lump sum at the time that I might want to go to University so that they would be in a position to help with my expenses.
As it happened I didn’t go to University, but the money came in useful for the family generally.
When I eventually got my own house and was managing a household budget I thought that this way of saving could be a good idea.
Like most people I get plenty of ‘junk’ mail landing on my doormat and quite a bit of it is from insurance companies, so I started reading about how these policies worked.
Basically the idea is to pay in a set amount each month over a ten-year period in order to get a tax-free lump sum at the end. The payments usually start from £10 to £15 per month, and most these days increase by £2 per month after each of the first five years. This way the investment keeps pace with inflation.
The only thing to be aware of is that if you change your mind during the ten years you're not going to get much back as a surrender value. In the first few years you would not even get back what you paid in so be sure you want to commit for 10 years before you start. Invest an amount you can easily afford each month to be on the safe side.
If you do choose to cash in the policy before the end of the ten-year period, you will incur penalties that progressively decrease over the life of the policy.
Over a period of years I took out a few ten-year policies with Friends Provident so that I could eventually receive a lump sum payment virtually every year. The first of these matured in June 1998.
That particular one was for ten years at a constant £10 per month so I paid in a total of £1200 over the period of the policy. Each year I got a statement showing the bonus payment for the year and the extra bonus paid on the accrued bonuses from previous years. At the end of the term the sum assured plus all the bonuses as notified together with a final maturity bonus came to £1911.83! This represented an overall increase on my investment of 59.3%.
I have another due for maturity this year - and the final figures look set to be just as good.
As I said earlier the policies now tend to be ones where the investment rises by £2 per month in each of the first five years, but having said that the more you invest the more there is to earn the bonuses.
Annual statements are sent out to each investor to let them know how the investment is progressing. These show the current value of shares purchased with the amount invested to date.
Obviously as the investment are with stocks and shares the increase is never going to be guaranteed but companies such as Friends Provident don't use high risk investments so I think we're pretty safe for a good payout.
And there's another advantage for me - this year Friends Provident are demutualising and the members will get a payout! I've missed out on most of the building society ones so I reckon I deserve this one!
Advantages: costs,returns, conditions, surrender value, critical illness Disadvantages: doesnt guarantee to repay the house at maturity
...anticipate receiving a large terminalbonus at maturity. my borker was excellent and explained everything, both good and bad. the literature was clear and easy to understand and it only took a week before my policy documents were sent. friends provident have consistantly been in the top 10 companies for endowments ...
richard777 31.07.2000
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Ciao members have rated this review on average: helpful Review of Friends Provident
Advantages: Some warning is better than no warning Disadvantages: No one can foecast the future economically
Like many it seems I fall into the category of those who are losing out in the Endowment market. Having taken a policy out for £27,500 back in 1992, I have recently received notice that it may be in excess of £8,000 short of its target. I pay £40 per month (level payments) and the quote to meet target in 2017 is £28. When the illustration was shown to me in 1992, 7% growth would have produced £23,500 and 10.5% would be generate £39,000. It was anticipated ... ...meaning that 27.5k would be easily attained. Now in the latest estimation a 6% growth rate is likely to generate only £19,500 (£8,000 short). We all know the reason why growth rates have not been so high, but there does seem to be at least a £2,000 difference in estimation figures.
Some accountability needs to be given to big organisations who paint a rosy picture when selling a policy. ...
Honest_Kev 13.06.2001
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Ciao members have rated this review on average: helpful Review of Friends Provident
Advantages: easy to sell for cash at a later date Disadvantages: did not perform well enough
...got a letter for friends Provident telling me it wasn't performing well enough to pay off my mortgage.
Having contacted Friends Provident, they sent me some literature regarding it's performance and what I could do ti rctify the situation, including taking out another Friends Provident policy to top it up.
I thought that this might not be a wise move, given past perormance, so decidied to contact the FSA and the consumer advice bureau for their ...
freespeech 17.01.2006
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Ciao members have rated this review on average: somewhat helpful Review of Friends Provident
Competitiveness of APR
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Advantages: Very lenient & friendly Disadvantages: APR can be very high
Welcome Fiancial Services....well what can I say about them. I have had dealings with them for a number of years. I'm probably on my 4th loan with them now. They will finance people with less then a perfect credit score, as well as the perfect score, but their APR can be very high. On the upside, the more you deal with less the more the APR reduces. However, I don't think it ever hits rock bottom. They staff is generally very friendly & provided you keep up the payments they stay off your back (which is usual).
They do like to ensure that you take out insurance as well, but it is not a prerequisate (to the best of my knowledge).
The payouts are quick & if you are looking for a car they have (well used to have) their own showrooms as well.
They appear to have grown a lot in the last few years, which I would say has to do with their ...
did find out about it was that some of the APRS were 49.5% which is a lot. I dug deeper and deeper to find out who was behind this credit card and low and behold, it was my old friendProvident. Vanquis Bank Limited is a subsidary company of Provident. However if they offer you a hundred pound credit limit they can charge you 58.5% with a £10 a year charge, whilst the Classic and the elctron card can be between £10 and £19 a year charge.
For those who do not know who are Provident are, here is the low down. They give people vouchers for stores and you pay them weekly by a collector coming to your house each week to an agent. Once you show you are a good payer you can apply for a loan. A typical loan repayment is £830 paid back for a £500 over a year.
Not everyone will pay the 49.5%, some will pay other rates depending on your rating ...
