Pearl Endowment worth keeping??

giraffe25

I took a pearl endowment out in 1993 for £40000.
I hope to pay off my mortgage without using the endowment.

Currently it's worth £19000

On last years statement it mentions a pearl price promise of £15800, does this mean at the end of the term i may get nearly £35000, or is that the minimum pearl will payout?

If so £35000 doesn't sound too bad compared to other endowments.

Advice appriciated

Girrrrr

EdInvestor

Hi Girr

Post the usual figs for a check

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date


It's very unlikely to be worth keeping this one as Pearl is now a closed "zombie" fund but you never know.

giraffe25

Hi,

It's a Pearl Homebuilder. Maturity date 2018
Sum assured £13920 Existing bonuses £5364.30 Total £19284.30
Monthly premium £47.60

Projected Final amount plus Pearl Promise £35084
Serrender value in 2004 £4290.

Projected shortfall at 4% £4900

I don't think it looks to bad ??

girrr

stanmoresaver

giraffe25 wrote:

Hi,

It's a Pearl Homebuilder. Maturity date 2018
Sum assured £13920 Existing bonuses £5364.30 Total £19284.30
Monthly premium £47.60

Projected Final amount plus Pearl Promise £35084
Serrender value in 2004 £4290.

Projected shortfall at 4% £4900

I don't think it looks to bad ??

girrr

Can i interject here - is the "pearl promise" worth anything??

giraffe25

I'm not sure, it came in 2001.

all the 2004 bonus statements says-
If your policy maturity value(sum assured + bonuses) is less than your target amount we will increase it by:
1. £15800
2. the amount required to reach your target.

I'm not sure if pearl can change it at anytime.

is it any good ? or worth cashing in

EdInvestor

Really need a current surrender value to make any meaningful comment.

I'm pretty sure the Pearl promise is worthless,but I imagine the inhouse expert on Pearl, dunstonh, will be along in due course with a view.

ReportInvestor

giraffe25 wrote:

I took a pearl endowment out in 1993 for £40000.
I hope to pay off my mortgage without using the endowment.

Currently it's worth £19000

On last years statement it mentions a pearl price promise of £15800, does this mean at the end of the term i may get nearly £35000, or is that the minimum pearl will payout?

Could you type out the wording of this promise for us to digest?

If it was a promise to pay out £35K guaranteed I would be astonished.

giraffe25

All my last statement says is:

This is the pearl Promise we introduced in 2001
We promise that your maturity will not be less than your target amount, provinded that the average return achieved on the underlying assets between 1st april 2001 and your maturity date of your policy compounded annually and after allowing for expences and tax is as least 6%

I've looked on the pearl website but nothing there if it's a guarantee
I hope it is
Out of order if it isn't, the valueation statement is very misleading then.

Girr

ReportInvestor

Ah. Was there a "guarantee" of £40K in 2001 that is now worth £35,000 in 2006?

BUT the £35,100 projection on a 4% pa fund increase sounds much more promising .

Best to leave it to dh for the final word.

giraffe25

No there's no mention of a guarantee just this pearl promise

Sum assured + Bonuses £19k
pearl promise £15800
total £35k
assuming 4% growth per annum

A promise to me is a guarentee :mad:

girr more than ever

ps I pay nearly £48 pm x 25 years = £14k payed in
so £35k seems to good to be true

I don't know???

defender_of_the_weak

Pearl promise virtually worthless, it relies on them getting 6% growth each year and they are not making this. Thats 6% every year across the remaining life of the policy and you are already 5 years behind target