Could Endowment Ever Recover!

Crazy_Saver

Even the best endowment taken out in 1997 on track for surplus would still so a shortfall on the projection letters. You cannot rely on that as a sole
source of information to see how good/bad an endowment is. Even the endowments maturing this year with a surplus received shortfall letters the time before maturity.

Also, projections can be quite misleading. All Prudential endowments have matured with a surplus to date yet they still got shortfall letters before maturity. Standard Life were doing the same a couple of years ago as well with even the letter that does out 3 months before showing a projected shortfall but the maturity still paying a surplus.

Hi everyone.

I often see replies like this and it has given me some hope regarding my endowment policy.

Taken out in '91 to cover £60k mortgage.

In 2000 we received our first worrying statement saying possible shortfall of £20k, so we transferred £20k over to a repayment mortgage leaving £40k on endowment

Over the years, projected shortfall has been getting larger and larger.

This July received first Red Alert letter showing £31k shortfall.

As most of you know, we are in the process of a claim but is there just a slight chance that the endowment may recover and reach our target amount!

A_Nice_Englishman

Who can possibly say?

Ian_W

I think that those who may have a better idea than me might need to know the company it's with and whether it's "with profits" or unit linked.

Crazy_Saver

I think that those who may have a better idea than me might need to know the company it's with and whether it's "with profits" or unit linked.

Hi there.

It was taken out with Eagle Star who now trade as Zurich.

It is "with profits"

Started Sept 91 Matures Sept 2016.

Projected Shortfall -

3% = £33,600
3.75% = £31,800
5% = £28,800

Pretty worring in my view

wymondham

hi - I also had a Eagle Star/Zurich policy. Debated for a few months what to do before cashing it in recently (nobody would buy it, so must have been bad!)....

Crazy_Saver

hi - I also had a Eagle Star/Zurich policy. Debated for a few months what to do before cashing it in recently (nobody would buy it, so must have been bad!)....

Oh Dear!

Not looking good for me then:(

EdInvestor

Post the following info and we can see what to doL

Surrender value
Guaranteed sum assured
Declared bonuses

wymondham

I was told by a Mortgage Advisor that the funds that Eagle Star used are not the ones that would be able to offer any decent returns and unlikely to recover (cash type??!!)- all double dutch to me, but this the deciding factor - don't know if all policies are the same - might not apply to you....

I've now cashed it in and paying off as much capital as I can with it as the monthly payments were silly - £151 a month for only a £36k endowment!!

ps: we did get a mis-sold claim on this one in the Summer - so good luck!!!!

Crazy_Saver

Sorry for the delay in posting, been laid up with Tonsillitis!:mad:
On antibiotics now so feeling better and ready to return to battle

Post the following info and we can see what to doL

Surrender value
Guaranteed sum assured
Declared bonuses

Hi EdInvestor.

Just got off the phone from Zurich.

Surrender Value = £14,541
Guaranteed Sum Assured = £16,200
Bonuses @ 0.25% = £5196.48