Endowments in General

martinman3

EdInvestor wrote: »

If you cashed in this endowment and saved it at a net return of 5% to maturity, also paying in the premiums, your total return would be 26,826. Beats all their forecasts and there's no risk.

The problem is then how to get 5% after tax for the next 5/6 years.

If someone has an offset mortgage that would be an ideal place for the cash.

JackRS

Keentosave wrote: »

Thanks,
on talking to SL again today - the operator today said there is a terminal bonus on maturing policies! - just not on surrendered policies. Terminal bonus currently 20.7% of the gaurunteed minmum (was 24.3% earlier in year).
quote]

Sorry to butt in but this is an issue I'd like to under stand more?

You'll have to forgive my ignorance as no doubt I'm wrong but I understood that the terminal bonus when paid at maturity is calculated from the target value so for example for your £35K policy that would be £7K (@20%) which when added to projected values at 4% must be more than investing surrender value? Or is there a large risk that the Terminal bonus might be 0% by the time it matures? Or does the projection already include terminal bonus?

Keentosave_3

I'll check and get back

ebsay2000

I'm pleased to report that I'm Well Endowed! :j

JackRS

ebsay2000 wrote: »

I'm pleased to report that I'm Well Endowed! :j

Think you've got your websites confussed, but good for you anyway I'm sure your beneficiaries are fulfilled

EdInvestor

JackRS wrote: »

Or is there a large risk that the Terminal bonus might be 0% by the time it matures?

At some life offices, yes

Or does the projection already include terminal bonus?

Yes

Keentosave_3

Latest from call to SL.
Terminal Bonus on maturity is % of mimimum not target amount and is currently 20% on a maturing 25 year WP.

My gut feeling is to surrender and get on with my life!