Friends Provident Endowment

jcb208

I have the above policy which matures in dec 2010 and pay £50 per month and is no longer used towards a morgage.
This policy has a shortfall of over 33% and have kept it going thinking it will make up some of the losses (Wrong I was) but now wonder If I should cash it in, as even todays value is £300 less then last month!!.Any advise what I should do Thanks
Cash Value as at 23/12/2009

£20,960.58
Regular Payment

£50.30 Monthly

[URL="javascript:changeLyr('worth');//changeLyr('footnote');"]What is the Plan Worth?[/URL]


Payment if Death Occurs Today

£35,000.00

Cash Value as at 23/12/2009

£20,960.58

Projected Value on
23/12/2010*

£22,500.00 assuming
4% annual growth £22,800.00 assuming
5.5% annual growth £23,300.00 assuming
8% annual growth

dunstonh

This policy has a shortfall of over 33% and have kept it going thinking it will make up some of the losses (Wrong I was)

Why wrong? A unit linked policy would have been best kept running over the last 12 months to allow the unit prices to pick up and you buy units cheaper than what they were. A with profits version less so although they have shown signs of turning around.

as even todays value is £300 less then last month!!

Why is that a surprise? A few days ago the values would have been down from the high points of a month or two ago. The markets are up by over 1% in the last few days so you have probably recovered from that already.

You need to tell us about where its invested. Without knowing the funds its impossible to say.

jcb208

All I know is it is a with profits policy,not got a clue as to where it is invested.It just seems pointless keep paying in every moth to find the value has gone down not up,2 years ago the cash in value was over £22000

Gorgeous_George

Look on the bright side.

Every month that you keep the policy is another month that the fund manager is paid - regardless of whether your policy goes up or down in value. Nice work if you can get it.

ETA: Disclaimer. I know nothing. I cashed in my Standard Life policy in July 2008.

GG

EdInvestor

Post some info about the policy

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

If you have a mortgage (regardless of whether the endowment is attached) what interest rate are you paying?

If you don't have a mortgage, and you decided to cash in the policy and reinvest the proceeds, what realistic return would you expect to get on the money over the next year?

jcb208

I cant seem to get my head round how they work out policy values as now my policy value has gone up nearly £2500 in one month so was glad I did not cash in, values now are
Cash Value as at 24/01/2010

£23,404.50
Regular Payment

£50.30 Monthly

[URL="javascript:changeLyr('worth');//changeLyr('footnote');"]What is the Plan Worth?[/URL]


Payment if Death Occurs Today

£35,000.00

Cash Value as at 24/01/2010

£23,404.50

Projected Value on
23/12/2010*

£24,800.00 assuming
4% annual growth £25,100.00 assuming
5.5% annual growth £25,600.00 assuming
8% annual growth




Is there any way these bonuses they added this month will be taken off again before the policy matures in 11 months time

dunstonh

Is there any way these bonuses they added this month will be taken off again before the policy matures in 11 months time

Its probable that uses doesnt get bonuses but is invested in unit linked funds. Unit linked funds follow the value of the underlying investments with no time lag.

EdInvestor

EdInvestor wrote: »

If you have a mortgage (regardless of whether the endowment is attached) what interest rate are you paying?

If you don't have a mortgage, and you decided to cash in the policy and reinvest the proceeds, what realistic return would you expect to get on the money over the next year?

If you want any realistic guidance about what to do, you need to post this information.