Prudential Endowment Policies

Swilly

Hello,
I have 2 policies purchased directly from the Pru to cover a £63000 mortgage due to end Feb2011(£10000 of which has been converted to repayment)
According to the latest plan update from the Pru my policies at 6% are now worth
Policy 1) Originally to cover £53000 worth £40100
Policy 2 Originally to cover £10000 worth £ 8330

This leaves a shortfall of £12900 but having converted the £10000 as mentioned above £2900

I would be grateful if anyone could tell me how Pru policies are performing and whether they still pay terminal bonuses which might help narrow the almost £3000 shortage

Very Many thanks and happy 2010
Swilly

dunstonh

I would be grateful if anyone could tell me how Pru policies are performing and whether they still pay terminal bonuses which might help narrow the almost £3000 shortage

They are doing well. Most were in surplus until the recession. Indeed, they had a 100% success rate in hitting target before then. They obviously fell back with that but if the recovery continues you would expect them to bounce back as they did after the last stockmarket crash. Whether you will have time or not its hard to say and will depend on the speed of the recovery.

Scot Am policies (now badged Pru) are not quite as good but even they were hitting over 90% before the recession.

Swilly

Hello dunstonh,
Many thanks indeed for your prompt reply.
Would you happen to know whether the Pru still pay a terminal bonus?
sincerely,
Swilly

dunstonh

Would you happen to know whether the Pru still pay a terminal bonus?

Depends on the age of the policy and the length of term. However, I have seen some TBs rise recently on values I have obtained.

Swilly

dunstonh wrote: »

Depends on the age of the policy and the length of term. However, I have seen some TBs rise recently on values I have obtained.

Mine are 19 years old and were taken out for 20 years.
As mentioned earlier,they are due to mature in Feb2011

Thanks very much,
Swilly