THE FACTS
ANNIE Bodlo from Tshwane told the SunDefender she took out a Multi Cash Plan policy with Metropolitan on 21 February 2005.
The policy was to mature on 1 February this year and the maturity amount shown on the policy was R144 010. This amount would be paid only if there were no withdrawals.
When she cashed in the policy, the amount deposited into her account was R87 555. She said she tried to find out why there was a shortfall of over R60 000 but didn’t get any help.
WHAT I DID
I contacted Metropolitan to get an explanation about the payout.
SOLUTION
Anneke Hanekom from Metropolitan said Annie’s case highlighted the bad impact of withdrawing cash earlier than the agreed end date of investments.
At the time Annie bought the policy, the projected maturity value at 1 February 2020 would be between R103 430 and R144 000. Annie withdrew R13 000 on 14 November 2011.
Annie said she had a face-to-face meeting with a financial adviser, who explained her maturity value will be reduced as a result of the withdrawal. Annie accepted the amended terms and signed for the changes.
Annie warned SunReaders to understand the negative impact of early cash withdrawals.
