Surender Values

hansi

I have a Pru (ex Scot Am) endowment to cover a mortgage of 26k with just over 4 years to run. About 6 months ago I contacted Absolute Assigned Policies with a view to selling it and they were not interested. However, this week they wrote to me offering 19k plus for it. I contacted Pru who gave me a surrender value of about £600 more than this. Is this a sign that endowments are at last picking up. The Pru surrender value last year was just under 16k.

Victors_Bruvver

I am also with the Pru, ex Scot Am. One of my endowments (25 years) matures next year paying out, so the projection says, the full amount of 25k plus bonuses, so even with no mortgage to cover anymore it is worth hanging on in there and keep the payments up.
The other one I hold is looking a little sad and will struggle to pay out the assured amount of 8k in 2012. However I feel that it is still not worth cashing it in and giving the Pru or anyone else the benefit of making money out of my stupidty for taking it out in the first place. My thoughts are that it also pays out on death of the policyholder, so if I do happen to meet that number 11 bus, it will pay for the funeral!

EdInvestor

hansi wrote:

Is this a sign that endowments are at last picking up.

It's a sign that Pru endowments are picking up.But the Pru WP fund is the best in the country. One of the Aviva funds is not too bad, and there are a few small mutuals whose WP funds are OK.

But the majority are not picking up in any meaningful way because they are not primarily invested in the stockmarket any more, unlike the Pru.

EdInvestor

However I feel that it is still not worth cashing it in and giving the Pru or anyone else the benefit of making money out of my stupidty for taking it out in the first place.

You mean it's better to lose even more money so as to stop some insurance company making some money out of your initial stupidity?

Frankly this attitude seems even more stupid to me.

Froggitt

My Scot Am/Pru policy showed a must smaller shortfall this year than it did last year. What with the miselling compo, it might just break even.

dunstonh

Froggitt wrote:

My Scot Am/Pru policy showed a must smaller shortfall this year than it did last year. What with the miselling compo, it might just break even.

Pru reckon that 19% of their endowments are at high risk of not hitting target. That puts the majority in a position where break even or surplus is likely.

Froggitt

Dun - For 25 year policies, do they have a cut off date that they reckon will break even, with earlier in surplus and later in deficit....eg Jan 1990?

dunstonh

They havent provided any stats for that i'm afraid

K9cuddles

Hasn't MVA been lifted with Pru now? Maybe that has made a big change in your policy?