Endowment Blues!

EdInvestor

PJBrowgate wrote: »

Policy 1- Legal & General for £36,100 25/11/88 Forecast at 4% = £27,100

Apologies, I misread your original figure.If you cashed in this policy and used the lump sum to reduce the mortgage, also increasing the mortgage payment by the amount of the endowment premium, at maturity your return would be guaranteed at 26,444. How does this compare with L&G's forecast at 6%? 5-6% is probably a more realistic return over 5 years. Not much (if any) risk premium left in this policy.You could try selling it: https://www.apmm.org

Policy 2 - Abbey National (Phoenix)
Forecast at 4% = £13,500

If you did the same with this one as above, your return at maturity would be 11,326. I'm assuming this is a unit linked policy and thus it should do quite a lot better than 4%. Possibly worth keeping.

Policy 3 - Abbey Life (Phoenix)
Forecast at 4% = £20,700

If you did the same with this one as above then the return would be 22,219.What is this invested in , is it a With profits endowment? If so, not worth keeping it to get less for taking a risk.

PJBrowgate

Hi Ed, thanks for help. Policy 1 & 2 are Unit Linked Endowment, and Policy 3 is with Profits Endowments. I don't know the difference but assume from your reply that the best course of action is to keep Policy 1 & 2 but cancel 3 and partially convert to repayment?

PJBrowgate

Dear Shazwellyn. I thought the time limit for claiming mis-selling had now expired as it is over 3 years since I was notified in writing that my Endowments were in danger of shortfall. Am I wrong?

dunstonh

PJBrowgate wrote: »

Dear Shazwellyn. I thought the time limit for claiming mis-selling had now expired as it is over 3 years since I was notified in writing that my Endowments were in danger of shortfall. Am I wrong?

The time bar rules are three years from being notified of a high risk of shortfall. However, the provider has to also say they are starting the clock ticking and notify you that its due to expire. These typically appear on the statements although sometimes they write it in letter form as well.

That said, having a potential shortfall is not grounds for complaint.

EdInvestor

PJBrowgate wrote: »

Hi Ed, thanks for help. Policy 1 & 2 are Unit Linked Endowment, and Policy 3 is with Profits Endowments. I don't know the difference but assume from your reply that the best course of action is to keep Policy 1 & 2 but cancel 3 and partially convert to repayment?

Post the forecasts at 6% and I can give a more specific reply.

PJBrowgate

Hi Ed,

The Full Forecasts are as follows:-

Policy 1- Legal & General for £36,100 25/11/88 25yrs to 2013
Guaranteed Sum assured = £11,047
Declared Bonus = £7,243
Surrender Value = £18,047
Forecast at 4% = £27,100 @ 6%= £29,300 @ 8%=£31,600
Premium = £52

Policy 2 - Abbey National (Phoenix) for £20,000 28/11/91 20yrs to 2011
Guaranteed Sum assured = £20,000
Declared Bonus = £None
Surrender Value = £8,269
Forecast at 4% = £13,500 @ 6% = £14,500 @ 8% = £15,600
Premium = £46

Policy 3 - Abbey Life (Phoenix) for 31,000 17/12/96 15yrs to 2011
Guaranteed Sum assured = £31,218
Declared Bonus = £None
Surrender Value = £15,356
Forecast at 4% = £20,700 @ 5.75% = £21,700 @ 7.5% = £22,700
Premium = £116

Thanks

PJBrowgate

EdInvestor wrote: »

Post the forecasts at 6% and I can give a more specific reply.

The Full Forecasts are as follows:-

Policy 1- Legal & General for £36,100 25/11/88 25yrs to 2013
Guaranteed Sum assured = £11,047
Declared Bonus = £7,243
Surrender Value = £18,047
Forecast at 4% = £27,100 @ 6%= £29,300 @ 8%=£31,600
Premium = £52

Policy 2 - Abbey National (Phoenix) for £20,000 28/11/91 20yrs to 2011
Guaranteed Sum assured = £20,000
Declared Bonus = £None
Surrender Value = £8,269
Forecast at 4% = £13,500 @ 6% = £14,500 @ 8% = £15,600
Premium = £46

Policy 3 - Abbey Life (Phoenix) for 31,000 17/12/96 15yrs to 2011
Guaranteed Sum assured = £31,218
Declared Bonus = £None
Surrender Value = £15,356
Forecast at 4% = £20,700 @ 5.75% = £21,700 @ 7.5% = £22,700
Premium = £116

EdInvestor

Originally Posted by PJBrowgate
Policy 1- Legal & General for £36,100 25/11/88 Forecast at 6% = £29,300

If you cashed in this policy and used the lump sum to reduce the mortgage, also increasing the mortgage payment by the amount of the endowment premium, at maturity your return would be guaranteed at 26,444. Not much less than L&G's forecast at 6%, while 4- 5% is probably a more realistic return over the next 5 years. Not much (if any) risk premium left in this policy.You could try selling it: www.apmm.org If you get no offers I would consider surrendering.

Quote:
Policy 2 - Abbey National (Phoenix)
Forecast at 6% = £14,500
If you did the same with this one as above, your return at maturity would be 11,326. Thus may be worth keeping as unit linked are likely to do better than WP.


Quote:
Policy 3 - Abbey Life (Phoenix)
Forecast at 5.75% = £21,700
If you did the same with this one as above then the return would be 22,219.I would dump this one as the cash return is better with no risk.