Phoenix won’t let us surrender our life policy
J.M. writes: We contacted Phoenix Life to surrender a life policy. We were quoted a value of £16,000plus, so we signed the surrender forms and cancelled our premiums. When we heard nothing, we telephoned Phoenix and were told our policy included an investment in a property fund that was suspended, and we would hear more in 28 days. Phoenix then complained that we had stopped paying premiums.
YOUR policy contained a spread of investments, and when you complained, Phoenix offered to pay the surrender value, less £115. This was the value of units in a property fund which was suspended last March, so your £16,000-plus payout had ground to a halt for the sake of £115. Property funds are notoriously illiquid. It is easy to sell stocks and shares for cash, but you cannot easily sell a slice of an office block to raise cash for an investor.
Phoenix had cash on hand to pay investors whose policies were maturing, but not for policies voluntarily surrendered. However, common sense has won. Phoenix told me: ‘Given the minimal fund value invested in the property fund, we will make an exception.’
By the time you read this, the full £16,273 will be in your bank account.