Scottish Amicable endowment maturity values.

hansi

Has anyone had a Pru (Scot Am) policy mature this year? If so, could you post what percentage (4,6 or 8) they worked on, and approx how much was the shortfall (if any). Thanks.

morrow56

I would also be interested in any Scot Am information anyone has

I have 2 policies and the estimated terminal bonus (3 weeks ago) was 30% and 34% on the policies

Afraid I am needing quite a bit more bonus than figures above if my policies are to mature near what I need to clear my mortgage

hansi

Mine actually matures May 2010 but the figures this year will give me a guide.

morrow56

hansi wrote: »

Mine actually matures May 2010 but the figures this year will give me a guide.

Mine's mature next May as well

Dunstonh is usually spot on re Pru/Scot Am - hopefully he will be along shortly with some recent info from Scot Am

dunstonh

Dunstonh is usually spot on re Pru/Scot Am

I havent had a quarterly update recently. I must be due for one. These show the trends on projections and the history on each policy going back around 8 years.

I seem to recall that the last one I got showed figures back to around 2004 levels. Personally, I wouldnt expect too much recovery. I just checked one that was valued at £51,071 on 18th December 08 and its now valued at £50,455. I expect that to turn around but not this year as there is often a lag on these funds and the recent rises wont get factored in yet.

hansi

Perhaps Dunstonh could help me with this.

I have received a statement from the Pru giving me estimated figures for my Scot Am endowment maturing in May 2010. I am fully aware that there will be a shortfall and I have savings to cover this. What I would like to know is this. I have another seven payments to make costing approx £300. They have given me two lots of figures, one showing maturity benefts assuming that I will pay another seven months premiums, and one showing possibe maturity benefits assuming no further premiums will be paid. The difference between the two figures is £200 on the three amounts (4,6 and 8%). Would I be sacrificing any benefits if I were to make it "paid up" other than saving myself £100?

dunstonh

Would I be sacrificing any benefits if I were to make it "paid up" other than saving myself £100?

Yes. The guaranteed sum assured will be reduced and final bonus can be reduced. You have another bonus announcement in there and its probable that the next one will be upwards given the recovery of late. Property is creeping up, fixed interest sector is back to pre-crash levels mostly (some higher, some lower but average is back) and stockmarket has had a good run. If we get no more recovery between now and the next announcement you would expect an increase in final bonus A paid up plan would get less than an ongoing plan. However, the differences in the final 12 months are likely to be small.

morrow56

dunstonh wrote: »

I havent had a quarterly update recently. I must be due for one. These show the trends on projections and the history on each policy going back around 8 years.

I seem to recall that the last one I got showed figures back to around 2004 levels. Personally, I wouldnt expect too much recovery. I just checked one that was valued at £51,071 on 18th December 08 and its now valued at £50,455. I expect that to turn around but not this year as there is often a lag on these funds and the recent rises wont get factored in yet.

Any further news for us on Scot Am updates Dunstonh?

Thanks in advance

dunstonh

Nothing new I have seen. I did get a statement on one the other day which showed the scale of the drop back in recent projections. It had just got to green before the crash before falling back to red. However, the drop was not as bad as the dot.com drops and its position was back to 2004 figures. Which for the time of printing and what has happened, is consistent with general investments. Since then the recovery has been enough for that to potentially improve (unit linked are back to 2005/6 figures now). Hence why there is potential for them to boost the final bonus at the next announcement. That of course assumes we dont have a repeat !

morrow56

Thanks as ever Dunstonh

The last time I phoned my with profits policies terminal bonuses were 30% and 34%

Do you have an idea if these figures are re-evaluated monthly, quarterly etc.

Mines matures in April and May 2010, I am hoping above figures will increase before than

Any thoughts on that?

Thanks

dunstonh

Pru can make changes daily potentially. Later unitised ones can and do change more frequently. Especially when it comes to MVRs and final bonus. However, older ones tend to be sluggish and stick to twice a year unless major events force their hand (and that tends to happen downwards but rarely upwards funny enough).

I would think there would be an increase before April/May next year assuming things get no worse. The drops that occurred earlier in the year factored in financial Armageddon. That fear has gone now . So if there is no relapse, I would expect increase. Unit linked values on balanced managed funds are up around 20%-25% in the recover period. Balanced managed funds tend to mirro the open with profits funds over the long term (without the smoothing).

If it was my money, I would probably hold on until maturity given where we are now, where we appear to be heading and the short time left.