Last payment on endownment

RJF_2

hansi wrote: »

My Scot Am Prudential endowment matures in May 2010 and I would be dancing on the ceiling if there was only a £700 shortfall :jIt's more likely to be £4000:mad:

You may still decide to have a dance after this... I've got a unit based "endowment", where the money is invested in units as you go, and there's no terminal bonus. With less than 4 years to go it's worth £25000, only half way to the expected £50000. With less than £3000 still to be paid in, I'll be over the moon if I'm only £4000 short in 2013!! :mad:

hansi

Oh dear! Mine is not a unit linked policy so I shall hope for the best!

dunstonh

With less than 4 years to go it's worth £25000, only half way to the expected £50000.

Thats not too bad then after a major stockmarket crash. You may just have enough time to see the recovery (assuming there is one) factor in to that.

Historically, the periods after a crash are double digit. Of course, you cant rely on the unknown doing what it has done before.

morrow56

hansi wrote: »

What does that mean in hard cash terms?

Hi mate

The way I understand it is:

Sum Assured (say) 10,000 + Bonuses Accured (say) 5,000 = 15,000
Add Terminal Bonus of 30% at Maturity = £4,500

Total Paid to you at Maturity = £19,500

Anyone know different please advise cause at this rate I have a high shortfall on the horizon in less than 6 months time

Hope this helps

Andy

RJF_2

dunstonh wrote: »

Thats not too bad then after a major stockmarket crash. You may just have enough time to see the recovery (assuming there is one) factor in to that.

Historically, the periods after a crash are double digit. Of course, you cant rely on the unknown doing what it has done before.

If the latest update had been early in the year, I'd be feeling happier. But it was only last week, so it includes this year's double-digit already.

turbobob

morrow56 wrote: »

Hi mate

The way I understand it is:

Sum Assured (say) 10,000 + Bonuses Accured (say) 5,000 = 15,000
Add Terminal Bonus of 30% at Maturity = £4,500

Total Paid to you at Maturity = £19,500

Anyone know different please advise cause at this rate I have a high shortfall on the horizon in less than 6 months time

Hope this helps

Andy

That is basically it for a traditional WP policy. Unitised with profits policies are quite different. Do check how the terminal bonus is expressed by your provider. On the ones I used to deal with the terminal bonus was expressed as a percentage of bonuses accrued (so in your example 30% of £5000 not £15000). That wasn't the Pru though - going by travelseeker's post above it appears that the Pru do calculate terminal bonus on the sum assured and bonuses.

hansi

morrow56 wrote: »

Hi mate

The way I understand it is:

Sum Assured (say) 10,000 + Bonuses Accured (say) 5,000 = 15,000
Add Terminal Bonus of 30% at Maturity = £4,500

Total Paid to you at Maturity = £19,500

Anyone know different please advise cause at this rate I have a high shortfall on the horizon in less than 6 months time

Hope this helps

Andy

Thank you.

Dick_here

turbobob wrote: »

That is basically it for a traditional WP policy. Unitised with profits policies are quite different. Do check how the terminal bonus is expressed by your provider. On the ones I used to deal with the terminal bonus was expressed as a percentage of bonuses accrued (so in your example 30% of £5000 not £15000). That wasn't the Pru though - going by travelseeker's post above it appears that the Pru do calculate terminal bonus on the sum assured and bonuses.

My understanding was pretty much opposite. I thought any Terminal Bonus was purely a percentage of the Sum Assured, nothing to do with accrued bonuses at all.

turbobob

!!!!!!_here wrote: »

My understanding was pretty much opposite. I thought any Terminal Bonus was purely a percentage of the Sum Assured, nothing to do with accrued bonuses at all.

TBH it's just a number. It doesn't really matter as the end result will be the same however its expressed. Main point was that you should check your documentation to be sure.