Endowment terminal bonus

JackRS

Can you experts please advise if the projected values ( 4% growth indicators etc) include Terminal bonus and if terminal bonuses are likely in the next few years?

For example one of my policies with Phoenix (was Royal Sun Alliance) current 4% projection is £27K (target 30K). I just got this info on the phone to them, I asked what their current terminal bonus was for a similar policy and they said 26% of target value and bonuses. Which if it was similar in 2011 when it matures would make a difference.

Well even if it was 10% that would be great. Obviously I’m missing something here so please enlighten me?

EdInvestor

Unfortunately your provider is one of those where TBs are becoming a rarity. Terminal bouses/final payouts have been dropping at virtually all companies however over the past few years.The reason for this is the changed investment mix following regulatory moves to reduce risk..

In most cases it is not worth keeping Phoenix endowments, especially if you are paying an interest rate of 5% or more on your mortgage.Better to surrender and use the lump sum and spare premiums to reduce your loan.