Anyone with a 25 year endowment which matured recently ?

sfc_vince

Thought I'd raise this old thread......I have an Aviva Low Cost Homebuyers Endowment policy maturing on the 2nd Feb.  I've just phoned up to get a valuation (they apparently issued papers in December, but I didn't get them) and it seems to have done quite well.  25 year term, premium of £112.26 per month, target of £57,698, valuation today of £68,791.  The mortgage that this was set up to fund has been paid off, but it'll probably go towards another house as we are looking to move.

Lanzarote60

We have an Aviva endowment maturing in Feb. I received our maturity letter first week of Jan.
Thankfully we paid our mortgage off a few years ago so kept it going purely as savings and the benefit of the promise amount.
Target amount was £60,275.00
Monthly £94.43 for 25yrs
Estimated maturity £35,492.88 (inc bonuses)
Estimated promise amount £15,475.00
Total estimated payment £50,967.88
This isn’t guaranteed so will let you know the final amount when we get it.

ToyotaNige

My Aviva policy pays out in a few days.
Target amount  £53,500
Monthly £90.55 for 25 years
Estimated maturity including bonuses £37,919
Promise amount £6,368
Total £44,287.  ( I think it works out at 4% over lifetime)
Nigel

gingerdad

Just had my Sunlife pay out

Was a lowcost start finished at £56 a month to payout £27000 - paid out £24500 so not too bad 

kandfs_mam

My 25 year endowment policy with Royal London has paid out today

£84 per month with guaranteed amount of £42,500 was taken out on our first home which was sold 17 years ago. We took out a repayment mortgage on our next house (now paid off) and kept the endowment running as a savings and life insurance policy.

The statement in April gave a surrender value just over £45k. Haven't received final paperwork yet but the money has been paid into my bank £56,315.  Whoop whoop

Matosman

I think I must be the last person in the UK to have an endowment mature.

I paid £70 for 12 months, then £114.53 pm for 24 months into an Aviva Low cost endowment (formerly General Accident). It had an intended pay out of £73000.  The policy matured today at £62,035 for which I calculate an IRR of 4.6%.

The total pay out was £51,435.99 plus mortgage promise of £10,600.

The mortgage was long paid off so the shortfall is not an issue.

My only concern is the maturity value was declared on 1 March 2022, at that point markets were down due to Ukraine, since then the FTSE100 (by way of example only) has risen 4%, should I have had at least something added to the final payout?
 4% would be an extra c.£2000

dunstonh

My only concern is the maturity value was declared on 1 March 2022, at that point markets were down due to Ukraine, since then the FTSE100 (by way of example only) has risen 4%, should I have had at least something added to the final payout?

No.    You are invested to the maturity date.   Not after the maturity date.     Plus, you wouldn't have wanted to be in much longer as the recent low point was March 11th.  It rose after that date.

Plus, you are unlikely to be invested 100% into UK large caps on an endowment policy.   So, looking at the FTSE100 is not a good idea.

fewcloudy

Matosman said:

I paid £70 for 12 months, then £114.53 pm for 24 months into an Aviva Low cost endowment (formerly General Accident)...

Should that say "for 24 years"?

Matosman

fewcloudy said:

Matosman said:

I paid £70 for 12 months, then £114.53 pm for 24 months into an Aviva Low cost endowment (formerly General Accident)...

Should that say "for 24 years"?

Yes 24 years

Matosman

dunstonh said:

My only concern is the maturity value was declared on 1 March 2022, at that point markets were down due to Ukraine, since then the FTSE100 (by way of example only) has risen 4%, should I have had at least something added to the final payout?

No.    You are invested to the maturity date.   Not after the maturity date.     Plus, you wouldn't have wanted to be in much longer as the recent low point was March 11th.  It rose after that date.

Plus, you are unlikely to be invested 100% into UK large caps on an endowment policy.   So, looking at the FTSE100 is not a good idea.

Apologies I did not make myself clear. The policy matured 11 April 2022, with the final payment into the fund being made on 15 March 2022. The maturity estimate of £62035.99 was given on 1 March, which is the same as the final payout. I agree it would not have been all in FTSE100, this was purely illustrative to show that markets have risen since then. The FTSE 100 All share has risen by 4% as well since 1 March.