basic endowment query

lexi

just wondered if someone could give me a straight answer.
i have an endowment policy maturing march 09.
i called clerical & medical twice & have been told:
a) unfortunately the recent stock market problems will affect your bonus
b) the recent stock market problems have no bearing on your policy
who is correct?

turbobob

A is more correct. But it depends on the type of policy. If you have a with profits policy then current problems will be very likely to affect the terminal bonus. The benefits already guaranteed will be unaffected at maturity. By guaranteed benefits I mean the annual bonuses added previously and the basic sum assured (on traditional with profits policies).

If you have a unit linked policy then it will depend on the funds it is invested in. But pretty much everything except a pure cash fund will have been affected in some way.