working out endowment payouts???

gwazi999

Hi. Not sure if I am in the right place but it is about an endowment insurance but not linked to a house or property. It is due to mature in April next year but I wondered how payment on these things are worked out. It says with profits but not sure what that means or even if it means anything these days. Is there a way of calculating the final outcome and payment on surrender or are we to take what they offer on trust of value. Thanks

MiloH

gwazi999 wrote: »

Hi. Not sure if I am in the right place but it is about an endowment insurance but not linked to a house or property. It is due to mature in April next year but I wondered how payment on these things are worked out. It says with profits but not sure what that means or even if it means anything these days. Is there a way of calculating the final outcome and payment on surrender or are we to take what they offer on trust of value. Thanks

The guaranteed value is the guaranteed basic sum plus all bonuses added to date providing you keep paying the premium until the maturity date.

If you ask the company for a surrender value that will tell you what it's really worth. If that figure is more than the guaranteed value, that means that your fair share of the fund is more than they have guaranteed so they will pay you a terminal bonus. The size of that terminal bonus may be higher or lower in April, depending mainly on how well the assets in the fund perform between now and then.