Clerical medical changes (endowments)

cornishirons

:oI have just had a letter from Clerical Medical saying that they are changing their investment strategy for my With-Profits Fund (Endowment) and their 'smoothing' policy. Essentially they are going to multi investment strategies for each part of the asset shares rather than just one (?) and reduce the amount of smoothing to better reflect market Conditions. At the same time my latest Endowment Statement 'Red Alert' states that I should now be looking to ensure that I can pay off the 'whole' Mortgage rather that just an element. I have plans in place for some top up but I don't understand the implcations of this change, should I be worried?
I would apreciate any advice. Many thanks.

EdInvestor

Suggest you get some figures

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premiujm
Maturity date
Maturity forecasts

Interest rate payable on mortgage.

Has the projected shortfall increased a lot?

cornishirons

Thank you for replying. The information is as shown, or not, on the statement:

Guaranteed sum assured - Used to give me a figure but not now included in statement
Declared bonuses - Used to give me a figure but not now included in statement
Surrender value - not given
Monthly premiujm - £45.53
Maturity date - 13/06/2013
Maturity forecasts - see below:

4%
Proj final amount £19,899
Shortfall - £12,200

6%
£21,200
£10,800

8%
£22,600
£9,400

Interest rate payable on mortgage - not sure but it is an Offset Variable Term interest only, I will have to get details.

Has the projected shortfall increased a lot? - Yes was working on about £6-7k to cover at 4%.

Thank you.

EdInvestor

Ring them up for the rest of the figures.

cornishirons

Thank you, will do but they are now closed until Mon.

cornishirons

Hi again,
I now have the information as follows:

Guaranteed sum assured - £10,784.00
Declared bonuses - 8,437.50
Surrender value - £16,126.00

Thanks