Endowment: Date of Maturity

Sandeman_2

This may be a simple one for someone out there.

I originally took out an endowment with Scot Am but is now part of Prudential (a company I did not want any dealings with!!) and I was recently inspecting my policy schedules. The Date of Maturity is clearly stated xx-xx-2012 but the confusion as to when I stop paying premiums is due to the line in the schedule "For what period payable: Lifetime of the first to die of the said lives assured up to and inclusive of the payment due on xx-xx-2011". Fully a year before the DOM. Am I fully paid up in 2011 and have to wait for a year before I receive the payout or do I have to continue payments right through to 2012? It seems a bit odd but it might be standard practice for all I know. I know policies usually run for 25 years but there is nothing on the schedule.
Any advice gratefully received.

kingstreet

I would hazard a guess that the policies were constructed at a time when annual premiums were the norm.

You would then have paid your final premium a year before the maturity date as premiums were payable in advance.

The concession to pay monthly means you pay that final year's premium in instalments, rather than as a one-off.

Be interesting to see if there are any other opinions.

dunstonh

My initial feeling is the same as kingstreet. Many old style policy docs did annualise the payments and the ability to pay monthly was a concession (at that time).

Can't think of any other reason to be honest.

hansi

Sandeman wrote: »

This may be a simple one for someone out there.

I originally took out an endowment with Scot Am but is now part of Prudential (a company I did not want any dealings with!!) and I was recently inspecting my policy schedules. The Date of Maturity is clearly stated xx-xx-2012 but the confusion as to when I stop paying premiums is due to the line in the schedule "For what period payable: Lifetime of the first to die of the said lives assured up to and inclusive of the payment due on xx-xx-2011". Fully a year before the DOM. Am I fully paid up in 2011 and have to wait for a year before I receive the payout or do I have to continue payments right through to 2012? It seems a bit odd but it might be standard practice for all I know. I know policies usually run for 25 years but there is nothing on the schedule.
Any advice gratefully received.

Have you asked Prudential?

kingstreet

hansi wrote: »

Have you asked Prudential?

A good question, although I don't think he would have got much response at 4.09am. I'm sure he'll do it tomorrow.

hansi

kingstreet wrote: »

A good question, although I don't think he would have got much response at 4.09am. I'm sure he'll do it tomorrow.

OOOOOOOOOh you are a one:T I meant tomorrow;)

Sandeman_2

I will contact Prudential but as I alluded to in the original post they are not a company I particularly trust. I have paid the premiums monthly since 1988 and from the schedule I have also calculated that over the term of the policy I have paid an additional £488 for the "privilege". I am slightly reticent to approach Prudential without doing my homework first, reason being that they are more than likely to say I have to pay right up to maturity rather than what it implies in the schedule i.e they get an extra 12 premiums. Now I'm not saying all companies are out to screw you but.............!