Vantage is a regular premium, whole of life, life assurance contract issued by Hansard. If a Hansard Vantage savings plan is surrendered within its original initial allocation period it will have a nil surrender value – in effect suffering a 100% surrender charge. Once the Hansard Vantage regular savings plan has completed the initial allocation period, if the policy is surrendered in part or in full, then the initial units purchased will be subject to a surrender charge. The charge is based on all the charges which Hansard would collect during the remaining years of the premium term. In effect this means that most, if not indeed all of the first 18 months – 2 years premiums are lost upon surrender.
There are a variety of fees and charges that apply to the plan including the Annual Management Charge, Service Charge, Switching Charge and Additional Unit Allocation Statement: all these will impact on the return you receive from the plan
It is relatively easy for this endowment type of regular savings plan to be mis-represented. The main area of contention is often to do with a lack of perceived flexibility and difficult to understand charging structures. However, clients are often also unaware that upon early full encashment most, if not all, of the first 18 months – 2 years premiums are lost through surrender charges.
Simply put, this entire family of regular savings plan (known as Maximum Investment Plans) has now been superseded by other better options.
A little like typewriters being replaced by super-fast computers, the outdated construction of this plan makes it a highly unattractive for international investors who wish to maximise their return.