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Simple question re Terminal Bonus...
Dick_here
Posts: 1,605 Forumite
...but I bet there's no simple answer.
If you surrender a with-profits endowment do you get any of the Terminal Bonus or is it all added on only upon maturity ?
I've A C.I.S. policy with 6 years left, currently csv of just over £30k. Estimated maturity (currently) of circa £50k. Does the £30k inc any TB or not ?
If you surrender a with-profits endowment do you get any of the Terminal Bonus or is it all added on only upon maturity ?
I've A C.I.S. policy with 6 years left, currently csv of just over £30k. Estimated maturity (currently) of circa £50k. Does the £30k inc any TB or not ?
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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No - you need to hold to the end to get the TB ...Can be quite a big chunk of the total payout - you should check what CIS are paying currently (not that means they will in 6 years)0
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You tend to get the terminal bonus accrued to date with a possible deduction. Very old conventional with profits plans can hold the TB until maturity but they are not that common.
You can usually spot if there is a penalty by looking at the current position (sum assured, plus annual bonus plus terminal bonus) against the surrender value.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You will get a large proportion of the terminal bonus but not quite all. I've just surrendered a L & G policy where the terminal bonus was to make up about £6,500, but on surrender I got about £6000 of it.0
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You will get all the TB so far accrued, possibly minus a small surrender penalty in the 5-10% of TB range.Some companies have no penalties.
It's a mistake to think you have to wait till maturity to get the TB.Trying to keep it simple...
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You tend to get the terminal bonus accrued to date with a possible deduction. Very old conventional with profits plans can hold the TB until maturity but they are not that common.
How old is "very old" though ?You can usually spot if there is a penalty by looking at the current position (sum assured, plus annual bonus plus terminal bonus) against the surrender value.
My sum assured plus annual bonus is higher than the surrender value by a couple of thousand, does that make sense ? I'm assuming the TB gets added on upon maturity, not before. Surely it is a bonus for completing the term, after all. Hence the name.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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