Winterthur Mortgage endowment dilemma

nieve

Can anybody help with dilemma concerning Winterthur conventional with profits policy.
We have a policy due to mature on the 1st april 2010 for what was supposed to be 17k. Winterthur have agreed that endowment was not our best option and have agreed to either pay redress of Ł4239.26 and keep policy going until maturity still paying premiums of Ł24.19 per month, or pay Ł15628.05 redress and surrender value.
From the 2007 bonus notice it reads basic sum assured Ł5231.00
regular bonus earned Ł6200.72
there has not been any regular bonus since about the year 2000
minimum guaranteed benefit at maturity Ł11431.72
There is no mention of figures for final bonus and I was wondering whether to accept redress only to help towards mortgage and keep the policy going to maturity for the final bonus and hopefully get somewhere near the original 17k.
Any help and advice greatly appreciated.

dunstonh

You cant haggle the redress as it uses a defined calculation. However, you dont need to keep the endowment running.

nieve

Hello dunstonh,
thank you for your reply.I called Winterthur today and asked what the terminal bonus rate is and the reply was at the moment it is 10%.It was 20% previously but they could not say what it might be next april at maturity.When asked if the terminal bonus rate had ever been 0% they would not say.
We can either accept a cheque for redress of £4239.26 and continue with policy paying £24.19 per month or accept payment of 11388.79 surrender value + 4239.26 redress =£15628.05 and surrender the policy.
I have read on some of the posts of Zombie funds and wander whether Winterthur is one of them?
Thank you and look forward to reply

EdInvestor

What interest rate are you paying on your mortgage?

What are their projected maturity values for the endowment?

nieve

Hello EdInvestor thanks for replying.
We are on a svr of 2.5% at the moment.
From the endowment plan update, dated 18 Feb 2009 it reads
Target amount £17000
Projected final amount @ 3.25% £12500, @5% £12500, @6.75% £12500
Projected shortfall, all at £4500.
These figures do not make sense to me, if their at different rates how can they all equal £12500?
Look forward to reply and thank you.

nieve

Has anybody had a zero terminal bonus?

EdInvestor

nieve wrote: »

Projected final amount @ 3.25% £12500, @5% £12500, @6.75% £12500
Projected shortfall, all at £4500.
These figures do not make sense to me, if their at different rates how can they all equal £12500?
Look forward to reply and thank you.

Yes these are obviously wrong, could you ring up and check?

nieve

Hello EdInvestor,thanks for getting back to us.I have called Winterthur office and the present final bonus rate is 10% which on a minimum guaranteed benefit at maturity of £11431.72 is £12574.I also asked what the previous final bonus rate was and they said 20%.When I asked if the final bonus rate had ever been zero they would not say.