Anyone with a 25 year endowment which matured recently ?

walkerscott

Just for information for those who are still considering cashing in an endowment policy with Clerical Medical.

Mine is coming to an end in March 2015 after 25 years ... and i am thinking about cashing in this next month 4 months early ...

Everything seems to have changed with the policies. I was promised that I would get between 70k and £100K but will barely be £50,000 at most.

My figures as at October 2014 are:

Sum Assured: £23,423-
Reversionary Bonus: £14,792-
Maturity Value excluding Terminal Bonus: £38,259-

Illustrative Terminal Bonus: £12,625-

i paid £100- per month of which £85- was the investment element. The rest gave me a guaranteed death benefit of £70K along with a former partner.

So, Terminal Bonuses, I was told, often paid between 50% - 100% of value but sadly no longer ...

Hope this helps you decide if you wish to cash in early.

I am still undecided this week ...

castle96

25 yr low start low cost endowoment with L&G. Premium now £61 p/mth.
Death benefit/target £36000
Basic sum insured £11938
Normal Bonus £8425
Terminal Bonus £6988 82%

Total return 1/15 £27272

TriathNanEilean

walkerscott wrote: »

Just for information for those who are still considering cashing in an endowment policy with Clerical Medical.

Mine is coming to an end in March 2015 after 25 years ... and i am thinking about cashing in this next month 4 months early ...

[snip]

I am still undecided this week ...

I may be too late but: for heavens sake, why would cashing it in early be a good idea? It isn't "early" in any case since you have paid in to it for 24 years and 8 months. Just let it go to completion since a large part of your final payment will be the terminal bonus and you endanger that by cashing in early (I think).

Ok, deep breath ... I too had a Clerical, Medical & General with-profits Endowment Policy. It matured 15 months ago and the final figures were:

1. Sum assured: 12132.00
2. Reversionary bonus: 9891.40
3. Terminal Bonus: 5726.10

1. Total:£27,749.50
   

Now, that was supposed to pay off a mortgage of £36k. But for years I'd switched to a repayment one and treated the endowment as an investment. Not a bad one either - for £45.60 a month for 25 years I'd received 5.11% annual interest (compounded monthly) plus (as dunstonh pointed out in another thread) life insurance thrown in. Not really all that bad a deal.

Mind you, Clerical, Medical & General got taken over during that 25 year period and with-profits policyholders got a financial benefit from that, paid into their policies. Which, I suspect, is why CMG endowment policyholders did a bit better than the industry average.

newleaf

I have a 25 year Legal & General with profits endowment policy, maturing late January 2015. I've just received the folowing statement:

Basic sum assured £10,902.00
Existing Bonus £7,655.40
Final Bonus £5,741.60 (no percentage rate stated)

Total payable £24,299.00

The monthly premium was £44.50 over 25 years.
This represents a shortfall of just over £11,300 on the mortgage (target amount/death benefit £35,625) to which it was originally linked, however (thankfully) that mortgage was paid off early and this is money which will now be invested elsewhere.
Is there anyone out there with the necessary maths skills to work out what percentage the terminal bonus is equivalent to please?

Somerset

Legal & General 25 years - matured 22/11/14


Monthly £ 73.10
Basic sum assured £ 18360.00
Normal bonus £ 13062.70
Final bonus £ 10711.40


Maturity value £42134.10

castle96

Newleaf

my TB was 82% so yours should be the same ?

25 yr low start low cost endowoment with L&G. Premium now £61 p/mth.
Death benefit/target £36000
Basic sum insured £11938
Normal Bonus £8425
Terminal Bonus £6988 82%

Total return 1/15 £27272

newleaf

castle96, I got my calculator out and divided the existing bonus by 82% and it came to well over 6,000.
Tried again with 80%, - still too high.
Tried a 3rd time, this time dividing it by 75% and that's pretty much exactly the final bonus, give or take a few pence, so looks like the rate may have gone down a bit since you had yours.
They do say in the accompanying leter that the estimated payout is not guaranteed, and can still go up or down between now and the date of actual payment, so I'll just have to keep my fingers crossed that no disaster strikes between now and the end of January...

kingstreet

Is terminal bonus expressed as a percentage of guaranteed basic sum plus accrued bonuses, or accrued bonuses alone?

AFAIK insurers do it both ways, according to their preference.

castle96

normal bonus £8425
x82%
= £6908

kingstreet

So, L&G is accrued bonus only...