Endowments: terminal bonus rates falling

It is worth noting that you need to look at Conventional With Profits and Unitised with profits differently so when you spot a thread title like this one, you shouldnt act on it without knowing how your with profit endowment is likely to be affected.

For example, many conventional with profits plans only update the value once in the year. Typically in Spring. Unitised with profits are often much more reactive and may have already factored in the last 12 months performance into their terminal bonus.

It is also worth noting that whilst stockmarket and property hasnt been good, things have been quite good for gilts and some fixed interest. Many with profits funds are heavy in those so wouldnt have been hit as hard as a fund totally investing in equties.

And, some terminal bonuses have increased in the last 6 months due to the lag that often comes in with smoothing. I have seen NU and Pru examples that have had increased terminal bonuses in June compared to their December valuations.

There is no hard and fast rule here.

Hi
Was just about to dump two of my three policies .....i thought SL announced bonuses nov?.
Is there a better time of the year than others to surrender?

dunstonh wrote: »

Probably too late now to get it surrendered in time. It would be cutting it very fine.

Not sure about surrendering but certainly too late to sell.

I think the surrender value is set on the day that you phone to surrender. I certainly had no papers to sign

GG