Is the rise in Stock Market Value good news for Endowments?

Inga

I have a Scottish Life Endowment which has a massive shortfall predicted when it matures in 2016. Is the rise in stock market good news, ie will it help raise the value of my final payment?

How are Scottish Life performing compared to other endowment providers?

ylesia

WP endowment maturity values are smoothed over time, I think that Scottish Life recently took up lifestyling investment for policies nearing maturity. So your policy will be moving to be mainly invested in fixed interest rather than equites, this will reduce the effect that stock market movements have on smoothed terminal bonus rates for maturing policies.

Your best bet would be to read the relevant PPFM for your policy, this will explain how Scottish Life invests your money and how stock market movements may affect your maturity value. You should be able to find this on their websitem, if they haven't already sent you a copy.

Overall though with only 6 years to go until maturity I doubt that this will make a huge difference to your shortfall but it can't hurt.