Scottish Widows endowment
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makemesumdosh
Posts: 325 Forumite
Just received a payment from Scottish Widows for just over £8600.
I have been paying £25 a month for 20 years so paid in £6000.
sum assured was £4960
is this a good return, I have yet to receive any paperwork showing how this sum was calculated but the cash was deposited in my account on maturity day
I have been paying £25 a month for 20 years so paid in £6000.
sum assured was £4960
is this a good return, I have yet to receive any paperwork showing how this sum was calculated but the cash was deposited in my account on maturity day
0
Comments
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Hi
That's a compound annualised return (annual effective) of 3.4528% over the 20 years. This doesn't include the cost of life cover which you also had. It's not awful but not that amazing either.
What was the type of policy? Was it Unit Linked or a With Profits policy (whether traditional WP or Unitised With Profits)?0 -
With profits, not sure on the type.0
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If it's With Profits (whether regular or unitised) it means your final payout may well include an element of final bonus. Unlike unit-linked products, the insurance company has a (limited) element of discretion in how much final bonus they pay. I don't think this is likely to make a significant difference in your circumstances but it would be interesting to see what - if any - final bonus your payout contains when you receive these details.0
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