Scot Am Endowment - Help Required

nexus.sixx

Hi

I have a Conventional with profits policy that is due to mature in Sept 2012. Monthly payment is £42.58. Current surrender value is £29203 and possible maturity values (as of today) are 4% £30,300 : 6% £30,700 : 8% £31,100.

I have been tracking these values for the last few months and whilst the maturity values have remained around the same the surrender value has gone up around £500 in 2 months.

Based on what has happened or likely to happen with the economy which of the growth figures will the final figure be more likely to be

If it is going to be around the 4% or even less I am tempted to surrender it now.

Thanks in advance for any help or advice

kingstreet

No idea what might happen in the next twelve months.

Is there a terminal bonus included in the surrender quotation? What percentage terminal bonus is currently being paid on maturing policies?

nexus.sixx

just phoned Pru and terminal bonus is included and figure given was £9188. This years annual statement showed total bonuses and benefits value as at 31/12/2010 as £20,556.13. They said they couldn't give me what the current terminal % bonus being paid is but could arrange for it to be sent out by post

stulaunch

nexus.sixx,

Interested in this as mine matures in 2013 and i've been meaning to ask for update.

How close is yours to reaching target figure based on your latest maturity values?

Scot Am/pru are usually one of the better endownments, not sure if they still are.

nexus.sixx

Target amount was £33,000 so not a million miles away but still worried it will go down next year so will probably look to get rid whilst its still worth nearly 30K

jakemillspaek

If you hang on until September 12 you will be paying approx £450 to get another £1100.
As long as the terminal bonus doesn't dive its a no brainer.

poolboy

I have a scot am pru endowment with similar contribution to you, however it matures in 2014.

I track the surrender value every few months to make sure it is worth keeping.

The surrender values have been going up recently - c 10% pa so it is aiming to undershoot target by c 10%.

However, I have better uses of the money now as I'd like to buy another property. Although I'll miss the final bonus I reckon if I get say 5k off another property this will compensate me for the deoptimisation of the endowment.

Just a thought, I haven't cashed it in yet but factor the above into any decision to sell.

nexus.sixx

Please can any of the people in the know give an insight into terminal bonuses from the Pru i.e have they gone up or down over the last few years and how badly are they effected by the general economic situation ?