Annual Endowment statement confusion

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I'm a bit confused about my annual standard life endowment mortgage statement. It says that the current value is approx £630 lower than its value last year is that right? I thought the value should be higher after another years payments
Thanx
Lady_K
Lady_K
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If it's a unit-linked policy then the value of the units will have fallen sharply and the value of your policy will have sunk with it, despite your premiums being added to it.
If it's a 'with profits' policy, then any bonuses previously added cannot be removed. The amount guaranteed at maturity will not have fallen.
But if you decided to cash it in now (which is, presumably, the 'current value' you have referred to) you need to understand that the underlying investments will most likely have fallen quite sharply in the past 12 months.
There's been a credit crunch don't you know! This is one of the ways it affects us ordinary mortals.
Lady_K
True, but what will have fallen is the cumulative non-guaranteed terminal bonus.These have been dramatically cut over the last 6 months to reflect the falls in all the markts over the past 2 years.Sadly there are probably more declines to come, which is why it may be sensible for those whose policies are nearing maturity to cash in now..
total current value 1st feb 2009 £10,928,20
total current value last year £11,599,00
Amount paid on death £27,000
Minimum payment at maturity £14,006.99
This endowmrent ends in Oct 2014
Theres other calculations but wasnt sure if I needed to put them here
Lady_K
Ed Investor, is there any hope for an improvement in the next few years do you think, how can things get much worse?
I dont understand endowments or what to do for the best but I'm going to find last years statement and compare them I could lose my house thats what I'm worried about
Lady_K
Based on the figures you have posted, I cant see why you would think its best to cash it in. Yours seems like its best to keep it.
Provider
Guaranteed minimum at maturity
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Mortgage interest rate
STATEMENT 2009
Provider - Standard Life
Guaranteed minimum at maturity - £14,006.99
Surrender value (current value) - £10,928.20
Monthly premium - £33.67
Maturity date - 27/10/2014
Maturity forecasts - 3.75% £14,600.00 - 5.50% £15,900.00 - 7.25% £17,400.00 - Target amount £27,000.00
Halifax mortgage interest rate - Tracker rate 1.240% (1/04/2009) (lasts till 2011 unfixed)
Difference from last years Annual Statement is
STATEMENT 2008
Provider - Standard Life
Guaranteed minimum at maturity - £13,966.88
Surrender value (current value) - £11,599.00
Monthly premium - £33.67
Maturity date - 27/10/2014
Maturity forecasts - 3.75% £16,500.00 - 5.50% £18,300.00 - 7.25% £20,300.00 - Target amount £27,000.00
Halifax mortgage interest rate - 5.990% (1/03/2009) 5.740%(1/04/2008)
Lady_K