Endowment surrender value

lillybelle

We applied for a surrender value in May, and was given a figure, we didn't action at the time, but re-applied this month and it has come back over £1700 less. We had to stop paying the monthly premiums in March 2009 due to reduction in income, so I wasn't expecting it to increase bit I didn't think it would drop so much. I have called the Insurance Co to query and they say it's probably because when they quoted in May they would have included the terminal bonus. The terminal bonus was allocated at start of July and less than they thought! Does this sound right?

dunstonh

so I wasn't expecting it to increase bit I didn't think it would drop so much

Some of the basic sum assured/terminal bonus is based on your carrying on premiums. So, a reduction there is possible. Plus, March was the lowest point in the markets and if you are in with profits there is usually a bit of lag. Many providers reduced their terminal bonuses at the half year point to reflect that drop.

With the markets and fixed interest investments going up at the moment and even property has stopped falling, its probable that the next 6 month adjustment will see an increase.