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  • FIRST POST
    • merryknight
    • By merryknight 9th Jul 17, 10:22 PM
    • 3Posts
    • 0Thanks
    merryknight
    Scottish Amicable Endowment Policy
    • #1
    • 9th Jul 17, 10:22 PM
    Scottish Amicable Endowment Policy 9th Jul 17 at 10:22 PM

    If anybody has one of these maturing soon.....

    My maturity letter arrived last week.
    Scottish Amicable Home Purchaser 2 (started 1992)
    It read

    No. of units: 11501.96 Unit price: £1 Value £'s: £ 11,501.96
    Bonus units: 3860.54 Unit price: £1 Value £'s: £ 3,860.54
    Final Bonus: Value £'s: £ 11,520.90
    Total value of with profit units: Value £'s: £ 26,883.40

    The target was £35,000 and £46.20 a month.
    Shortfall is £8116.60

    I was checking it online leading up to maturity and the last time I checked was 29th of May.
    The estimated value was £26,771.07
    I was under the impression the terminal bonus was added at maturity and was not assumed in any valuation.
    Are these figures typical?
    Is the "final bonus" the same as "terminal bonus"?
Page 1
    • TrickyDicky101
    • By TrickyDicky101 10th Jul 17, 7:16 AM
    • 2,688 Posts
    • 1,741 Thanks
    TrickyDicky101
    • #2
    • 10th Jul 17, 7:16 AM
    • #2
    • 10th Jul 17, 7:16 AM
    Final bonus is the same as terminal bonus.

    Using your figures for a presumed 25 year policy you have a compounded annualised growth rate of just shy of 5% which isn't awful (could have been a lot better but regulatory constraints on solvency in With Profits funds have limited the reward potential of such funds ie as equity exposure has been reduced). You have also had the benefit of life insurance included in the premiums.
    • merryknight
    • By merryknight 12th Jul 17, 12:57 PM
    • 3 Posts
    • 0 Thanks
    merryknight
    • #3
    • 12th Jul 17, 12:57 PM
    • #3
    • 12th Jul 17, 12:57 PM
    Thanks for the analysis Tricky, not too bad when you break it up like that.
    Glad that I switched to a fifteen year repayment type eleven years in, and that finishes next year
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