Help!!! Endowment Projection.

JT62

Very worried.I have an endowment with Sun life of Canada.
Last years projections. 4%- £36,800
5%- £39,600
6%- £43,000
Rang today... 4%- £29,600
5%- £30,500
6%- £33,800
Here are the details:-
Guaranteed min death benefit-£52,000
Declared bonuses- £8,724
Surrender value- £18,970
Monthly premium- £81.83
Maturity date- Nov. 2015
Interest on mortgage- 3.75%
Mortgage is capped tracker but finishes May 2009,so will be looking hopefully for a cheap long term fix.
As you can see on the 5% projection we have lost £9,000 (on paper i know).
The question is :- What to do now? We have a separate whole of life policy for myself and my wife,so the life insurance side of the endowment is not critical.
Any help greatly appreciated.

sandiep

Don't loose sleep over this. It's nowhere near as bad as you think.

You don't loose anything on share or endowments until the day that you sell them/cash them in. Your endowment can run until 2015, i think if I read it right, so you've not "got" to do anything with it immediately.

I am not an IFA, and i suggest that you do go and talk to one, but you've got 6 years for the stock market to recover and get back some decent values, which should see the recession out and the economies into healthy growth again.

Look at it this way - for the next 6 years you are buying stocks and shares, (if you're still paying into it), so definitely for the short term I wouldn't panic.

Now, for the sensible advice - if you are worried that an endowment long term isn't the best investment vehicle, go and speak to an Independent Financial Advisor, because there are all sorts of financial products out there and they are best place to find the best one for you.

JT62

Thanks for the reply,i was just worried about the massive decline in the projection.Maybe it will be best to ride out the storm.Also i will get advice from an I.F.A as you suggested.