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Equitable Life

Alaric
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Equitable Life

#242267

Postby Alaric » August 7th, 2019, 1:33 am

This Company had a dedicated discussion board on TMF.

Back in 2000, there was a lot to discuss.

The final wind-up of the Company is documented at
https://www.dailymail.co.uk/money/news/ ... giant.html

Usually when Phoenix and other "consolidators" get involved, the residual with profits policyholders, if any, are allowed to run off their policies rather than have them compulsory transferred to either totally guaranteed or unit linked.

richfool
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Re: Equitable Life

#242300

Postby richfool » August 7th, 2019, 8:48 am

Thanks for that post Alaric.

Under the proposals, Equitable’s with-profits policyholders will switch to ‘unit-linked’ savings, which go up and down in line with the value of investments and do not have any guarantees attached.

My concern would be the switch to unit-linked, and perhaps at a time when markets are already high and due a correction or bear market. Policyholders might be further aggrieved if they switch and receive an uplift, only to then see it disappear in market falls.

Dod101
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Re: Equitable Life

#242339

Postby Dod101 » August 7th, 2019, 10:10 am

Alaric wrote:This Company had a dedicated discussion board on TMF.

Back in 2000, there was a lot to discuss.

The final wind-up of the Company is documented at
https://www.dailymail.co.uk/money/news/ ... giant.html

Usually when Phoenix and other "consolidators" get involved, the residual with profits policyholders, if any, are allowed to run off their policies rather than have them compulsory transferred to either totally guaranteed or unit linked.


Bear in mind that this transfer seems to have nothing to do with Phoenix Holdings. I expect the reason that these policies are being changed to unit linked is that there are no or few assets to back a with profits arrangement. The so called 'consolidators' mentioned by Alaric are usually picking up well funded life assurance portfolios that the seller wants to get out of for some reason or another and so the consolidator is simply taking on the admin for 'running off' these policies, that is looking after them until they mature, either by the death of the assured person, or surrender usually. The surplus investment funds backing the liabilities of the policy are then released as a profit to the consolidater. The whole point about the Equitable Life policies as I understand it is that there are insufficient funds to meet that obligation and so there are no funds or insufficient funds to transfer. Companies like Chesnara and Phoenix Holdings will therefore not be interested.

The proposal is that the liabilities are transferred to the policyholders by changing the arrangements to unit linked and handing the admin to another administrator, thus allowing Equitable Life to be finally would up. That of course assumes that the Daily Mail is correct.

Dod


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