Endowment Due To Finish Mar 09

CWE

Have an endowment which is due to end in March 09 with the fall in the stock market am i able to extend the period on the endowment to allow for things to pick up or would this not be a good idea
Thanks

bcl999

I have one due to mature then too. I phoned today for a surrender value and it was slightly more than the maturity forecast in my last Plan Update letter issued in January. I'm wondering if I should just go ahead and surrender it now rather than wait and perhaps find the stock market losses start affecting it.

dunstonh

Are you invested in the stockmarket?

No, you cannot extend as you would break the qualifying rules by doing so and would have to wait another 10 years even if the provider allowed it. However, nothing stops you putting the lump sum back in to something else if you are so inclined.

EdInvestor

CWE wrote: »

Have an endowment which is due to end in March 09 with the fall in the stock market am i able to extend the period on the endowment to allow for things to pick up or would this not be a good idea
Thanks

You would have to surrender, you caqn';t extend.

Which is your provider ?

I'm wondering if I should just go ahead and surrender it now rather than wait and perhaps find the stock market losses start affecting it.

Could be a good idea, which is the provider?

Note that a lot of endowments aren't in the stockmarket any more so won't be affected by recent falls in this market.

bcl999

EdInvestor
It's a Scottish Amicable Home Purchaser Plan 01 series, now run by Prudential. In their last forecast letter in January, the maturity projection was £27400 at 4%, £28000 at 6% and £28700 at 8%. When I phoned today, they said current surrender value including terminal bonus and after charges is £28149. The original min. death benefit was £22325.

dunstonh

That highlights the problems with projections. The 4% and 6% projections are lower than the current value.

Pru said earlier in the year that they expected 98.2% of the 2008 endowments to hit target and pay surplus. Despite the recent problems on the markets, the Sep and Oct valuations received to date have been higher than last year.

Pru have taken the approach of invoking market value reductions more than hitting the terminal bonus value. This is better for those maturing in the short term as they avoid the MVR on maturity. Those that surrender before maturity though would pay the MVR.

What is the current value as that would let us know the difference between the current value and the surrender value and see if you are being hit for an MVR.

CWE

Provider is Legal and General

bcl999

dunstonh
Just called them back about current value and they say its £18287.70. I also mentioned this market value reduction thingy and they sais it doesn't apply to my policy. Hope this helps.

EdInvestor

Please post the following info about the endpowments for a view

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
maturity projections
Interest rate payable on mortgage

If you are not the OP, please start a new thread as otherwise it is too confusing.