Prudential Endowment Policies

kmb275l

Hello All,
I would appreciate your advice on my endowment policies,given the virtual collapse of world stockmarkets yesterday.
The policies were taken out directly with the Prudential in 1991 to cover an Abbey endowment mortgage which is due to finish in February 2011.
My concerns has been heightened having read about the collapse of a reputable Japanese Insurance company.
Should I cash them in, or ride out the crisis in the hope that the market will regain some of its value?
Many Thanks

feisty1

What is yr direct concern with Pru? Have you been aware of the performance over them over the yrs. Also r u still on the same mortage you took out in 1991 with Abbey?

dunstonh

The Japanese insurer was small. UK insurers havent got involved in the same way as the banks have. The main risk to the UK insurers is the solvency of their with profits fund. These tend to invest heavily in fixed corp bonds, much of which involve banks.

Pru have an excellent reputation and FSCS protection is at least 90% of its value. So, you should have no concerns over the money.

kmb275l

feisty1 wrote: »

What is yr direct concern with Pru? Have you been aware of the performance over them over the yrs. Also r u still on the same mortage you took out in 1991 with Abbey?

My concern is not with the Pru,but how it might be affected by the falls in the stockmarket.
I am still with the Abbey,I currently have a 5 year fixed rate deal with them, that will see me through to the end of the mortgage in 2011.

EdInvestor

Post some info about the policy for a view

Guaranteed sum assiured
Declared bonuses
Surrender value
Monthly premium
Maturity date
maturity forecasts
Interest rate payable on mortgage

dunstonh

My concern is not with the Pru,but how it might be affected by the falls in the stockmarket.

Sept and October statements showed values increased over that period. Despite the stockmarket falling during that time. Even the 8% projections increased which tells us that returns in that period were in excess of 8%.

Pru have been adding back in Market value reductions rather than significantly hit the terminal bonus. That allows maturing plans in the short term to avoid the worst and only hits those that surrender early rather than see it through.

kmb275l

Thank you for your prompt replies,I am reassured that the correct thing to do would be to see the policies through to their maturity.
In these uncertain times,I am glad that I chose the Prudential !!