What’s best to do with Full Term Endowments?

frogsuk

After being in the fortunate position of paying off my mortgage early in 1998, I have four endowments which I continued to pay into as an extra saving with what was Scottish Amicable and now the Prudential which are starting to mature in March next year 2009 through to March 2011.

They are all with profit ones and are actually realising what they where suppose to and are on target.

What is the best way to realise there potential?

Most importantly, any other advice on dealing with the final stage of this investment and possibly gaining more for the policies?

Thanks in advance

maninthestreet

Without knowing the details of these 4 endowment policies, it's impossible to offer any advice.

frogsuk

What details would you need and is there any general idea of what happens?

maninthestreet

Post the details for each endowment from the latest statements you have for each, e.g basic sum assured, total bonuses added to date, etc. Also post details of the projected maturity values for each endowment that your endowment providers should provide you with each year.

frogsuk

Here are the details I hope you need from the Conventional With-Profits Statement I got over the telephone with Prudential today. They are also confirming in the post as well
I hope they are what you need. I asked what the Maturity values were for today if the policy matured today and they said they were achieving around the 6% today.

Here they are in maturity date order:

Policy 01
Maturity Date 28/03/2009
Min Death Benefit £12500
Amount of Benefit £4850
Total bonuses £10238.34
Projected maturity values 4% £15900 6% £16100 8% £16300

Policy 02
Maturity Date 28/05/2009
Min Death Benefit £14000
Amount of Benefit £6664
Total bonuses £10084.39
Projected maturity values 4% £14600 6% £14800 8% £15000

Policy 03
Maturity Date 22/01/2010
Min Death Benefit £2380
Amount of Benefit £838
Total bonuses £842.49
Projected maturity values 4% £2630 6% £2700 8% £2770

Policy 04
Maturity Date 01/11/2011
Min Death Benefit £8820
Amount of Benefit £3105
Total bonuses £2494.09
Projected maturity values 4% £8740 6% £9217 8% £9830

EdInvestor

We also need the surrender value and the monthly premium for each policy.

What would you do with the money if you surrendered the policies now? In the absence of a mortgage, please nominate an "interest rate" net of tax (for cash deposits ) or a "growth rate" ( for investments in an ISA) which can be used for comparison purposes.

Once you have obtained this additional info you may also wish to fill in the form at https://www.apmm.org and see if any of the TEP traders will give you more money than the Pru for any of your policies.

frogsuk

Hi again.
In view of yesterdays news on the BBC website
http://newsvote.bbc.co.uk/1/hi/business/7908199.stm
Endowment payouts fall at the Pru
What would be your advice on the above policies?

dunstonh

The news doenst change the views on Pru. Indeed, if anything it just highlights how much better they have been.

EdInvestor

As markets have not yet recovered expect maturity values to continue to fall.

dunstonh

EdInvestor wrote: »

As markets have not yet recovered expect maturity values to continue to fall.

unless they go up.

No-one has a crystal ball.

frogsuk

Well Just had the 1st letter from the pru and it is paying out on 28/03/2009 £15014.63 A big drop!!! And they say they are going to pay the building society as their records still have it assigned to them even though we have a letter saying that we are the assignees as we paid off the mortgage some time back.
Quoted 28/08/08
Policy 01
Maturity Date 28/03/2009
Min Death Benefit £12500
Amount of Benefit £4850
Total bonuses £10238.34
Projected maturity values 4% £15900 6% £16100 8% £16300

Right... Where's the best place to make this work and try and gain some of the losses???
We are both none tax payers