Shall I stick with the endowment?

blackadder1

This appears to be the place to get good advice on endowments.

Mine was with Scottish Amicable but now with the Prudential who took them over in the 90's. It is due to mature on 1/9/2014.

I got a surrender value of £16169.00 as at 3/9/08.
Projected maturity values at 4/6/8% are £22200/ £24600 / £27300. As yet Prudential have not sent the bonus statement for 2007.

The 2006 bonus figures are:

Sum assured £7875.00. existing bonus £3852.16

I was thinking about reducing a £69000.00 Woolwich tracker mortgage (Interest rate currently 5.19%)

Any thoughts? :rolleyes:

EdInvestor

Wat is the monthly premium?

blackadder1

It is a monthly premium of £30.00

Thanks

EdInvestor

blackadder1 wrote: »

Projected maturity values at 4/6/8% are £22200/ £24600 / £27300.

If you cashed it in and used the lump sum to pay down the mortgage also boosting the mortgage payment by the amount of the premium to maturity you would end up with a return of 24,433.

So there's potentially a bit extra in this policy for taking a risk, but not much.

You may like to try and sell it, see if there's any more value in there.

https://www.apmm.org

dunstonh

Remember that hte 4/6/8% returns are before charges. Not after. i.e. if the reduction in yield due to charges is say 2%, then the projection figure of 6% really means a net return of 4%. This does tend to understate the potential returns on the better endowment policies. Scot Am are one of those.