Anyone with a 25 year endowment which matured recently ?

Thrugelmir

Matosman said:

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. 

Did you hold a unit linked policy invested in the FTSE100? 

dunstonh

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

If the policy was unit linked, the values would change daily right up to maturity.  If was With Profits then the value would be known in advance and unlikely to change on older plans.     On unitised with profits, the value could change but seeing as the annual bonus is stable on these, it is pretty easy to predict minus any major stockmarket crash happening (which there hasn't been).

Also, a number of WP endowments will effectively be 100% cash before maturity to avoid any drops prior to maturity hitting the value.  It also means you miss out on any gains in areas you are not in.

Matosman

Thrugelmir said:

Matosman said:

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. 

Did you hold a unit linked policy invested in the FTSE100? 

No, I picked FTSE100 and FTSE All share, purely to illustrate that markets have moved significantly upwards since 1 March 2022 and 11 April 2022. I do not know exactly how the funds have been invested, to be honest but I would have expected some increase between the  March 2022 and 11 April 2022, unless the entire fund was invested in the Russian stock market!

dunstonh

No, I picked FTSE100 and FTSE All share, purely to illustrate that markets have moved significantly upwards since 1 March 2022 and 11 April 2022.

The FTSE100 is just UK large cap.  Other markets have not moved up as much or are still down.  On those dates, UK all companies is only up 2.68% (which is not significant).  
Asia is down 0.11% 
Sterling corp bond is down 2.49%
Japan is down 3.84%
Gilts are down 5.07%
Index-Linked gilts are down 8.98%

Matosman

dunstonh said:

No, I picked FTSE100 and FTSE All share, purely to illustrate that markets have moved significantly upwards since 1 March 2022 and 11 April 2022.

The FTSE100 is just UK large cap.  Other markets have not moved up as much or are still down.  On those dates, UK all companies is only up 2.68% (which is not significant).  
Asia is down 0.11% 
Sterling corp bond is down 2.49%
Japan is down 3.84%
Gilts are down 5.07%
Index-Linked gilts are down 8.98%

Thanks, I have queried the point with Aviva, let see what they say.

Matosman

Well I got a reply from Aviva as follows:

"The estimated maturity value quoted in your Maturity Pack dated 1 March 2022 was calculated using the current final bonus rate as at 31 December 2021. As there has been no change in this rate since the Maturity Pack was issued the estimated maturity value was the value paid. 

At maturity the sum assured and total accrued regular bonus are guaranteed to be paid. In addition we may pay a final bonus however this is not guaranteed and is subject to change at any time. 

The final bonus rate used in the calculation of the maturity value was the current rate of 26% of the sum assured and existing bonus." 

A breakdown of the maturity value paid is shown below: 

• Sum Assured: £:27,489.00

• Regular Bonus: £:13, 104.88

• Interim Bonus: £;287.71

• Final Bonus: £:10,554.40

• Promise Amount: £:10,600.00

• Maturity Value: £:62,035.99

Any thoughts? Surely the final bonus rate be calculate at 31 March 2022, not December 2021.

Shedsitter

Hi,
First post
I've tried to work through this thread but can't find an answer to a question I have. We have a Clerical Medical endowment which matures in January 2025. It's supposed to pay off a £57k mortgage. The last statement was in February and valued the plan at £46,000 

There is mention of a final bonus but I've no idea what that's likely to be. But the question I have is: Is this final bonus normally included in the yearly plan valuation or is it added at the end? 

I'm trying to get an idea how much extra we're going to have to find.

Thanks for any help.

dunstonh

 But the question I have is: Is this final bonus normally included in the yearly plan valuation or is it added at the end? 

There are two values on these plans.  The current value and the surrender value.    The current value will not included it but the surrender value will.

The final bonus accrues and reduces as it goes along.  Hence why the surrender value is the most telling value of the current position.

Shedsitter

dunstonh said:

 But the question I have is: Is this final bonus normally included in the yearly plan valuation or is it added at the end? 

There are two values on these plans.  The current value and the surrender value.    The current value will not included it but the surrender value will.

The final bonus accrues and reduces as it goes along.  Hence why the surrender value is the most telling value of the current position.

Thanks. The statement gives a cash in value which is £46,000 the same as the plan summary value. There isn't anything specifically named a surrender value.

Shedsitter

One other thing - the reason I'm trying to work it out is that we're on a tracker mortgage (0.75 above the BoE rate). So I'm trying to work out if it's worth us cashing in and paying it off with (basically all) our savings in order to get mortgage free before rate hikes come in.