Endowments with Profits.

golden_girl

Hi EdInvestor

This is the info I was given today

Surrender Value £18369.81
Declared Bonuses £14474.68
He said it was a low start endowment and not a unitised plan
There is a terminal bonus which is 23.3%

Hope this helps. :T

EdInvestor

Well Goldengirl, I thought you had made a mistake earlier, but now I see you have one of the very few GOOD endowments still left in the UK.

With 9 years to go, you still have a very reasonable terminal bonus (almost unheard of), which now ought to start rising again. In addition you also have an enormous guaranteed value of 34,114, out of a target amount of 40,000. :eek: That's quite extraordinary.

Most companies which handed out big guaranteed bonuses like that have now turned into zombies. But not Royal London. (The reason might be if they don't do much pension business: this guarantee problem has hit hardest on pensions, although endowment customers obviously also suffer.)

In many (most) cases these days, if you surrender the policy and put the money on deposit @4% also paying in the premiums to maturity , you end up with more money for the cash than you'd get if the endowment grew at the lowest possible figure.

Not so in your case . You'd get 36,393 , whereas if you keep it, you'd get almost 40k at 4%, and clearly 6% growth and a good terminal bonus is well within reach.

So I suggest you hang onto that one, it is a rare beast these days, a genuine performing endowment Bragging rights at the pub!

Perhaps you can cut costs with a better mortgage deal? Better start a new thread for that, I'm not the right person to ask.

golden_girl

Hi Edvestor,

This is great news... Many Thanks for your help :j