Clerical Medical Low Cost Endowment

andyrpsmith

I promised to post the details of my low cost endowment taken out via Lloyds TSB in 1987.

My original mortgage was for £45,000

Endowment is with Clerical Medical with the following details:
Sum Assured £15,165
Monthly Payments £60.45 over 25yrs
Reversionary Bonus at maturity (19 May 2012) £14,563.80
Terminal Bonus £5,351.20
Total Payout on 19th will be £35,080.00

I was also successful in obtaining compensation from Lloyds (Ombudsman appeal) and received £3,200

So in reality total payment £38,280 so a total shortfall of £6720 on the £45,000 target.

I have already paid off the mortgage.

The yearly bonuses started out in the late 1980's at about £480 and dropped off during early 2000 to less than £100.

I new it should reach at least £30,000 due to the Bonuses added during the years but did not know what the terminal bonus would be as is was not guaranteed.

I hope this is helpful and wish everyone else good luck with their maturity figures.

COLOURBOUNCE

Hi Andy, thanks for the info. Mine is due late this year and figures look similar. Can I ask, what is the system used when getting payout here. Do they ask where you want it paid or are there reams of form filling first ?

andyrpsmith

They will just send a cheque by default. You can opt for an alternative and they include a form to cover this. Good luck with the final value.

COLOURBOUNCE

Thanks for the info Andy.

brewerdave

A bit late...but they will probably ask for the original policy documents, not copies...make sure that you have them (or know that your mortgage provider still has them) - it created a delay for me as NatWest had never returned the originals of one of our policies when I'd paid off our mortgage with them. Think I had to send them my copy documents and then sign some form of indemnity waiver because the original was not available which delayed the pay out by several weeks.

neilj203

We are awaiting our first payout next month from Clerical Medical. We left it paid up about three years because it was doing so badly. Surprisingly the terminal bonus, while not large about 26 per cent, will be better than expected.
They said they would send us a form and we could choose a cheque or payment by BACS into an account.
Having said that when I asked about a policy coming out in December they said the next round of terminal bonuses had yet to be set. I was told to ring about two months before to get final figure.
Hope this helps.

COLOURBOUNCE

Did they quote 26% Neil, or is that a calculation you have done. Also, does the TB apply to the whole fund do you know?

neilj203

I was told 26 per cent by CM.
Not sure how calculated.

TriathNanEilean

neilj203 wrote: »

We are awaiting our first payout next month from Clerical Medical. We left it paid up about three years because it was doing so badly. Surprisingly the terminal bonus, while not large about 26 per cent, will be better than expected.

Thanks to both andy (thread starter) and neilj for this info; much appreciated. Can I ask neilj to be even kinder and post details when you get payment from Clerical Medical? It would be great to discover that 26% really is the terminal bonus, since it is a very decent amount given what many with-profit endowments have been paying recently.

And I promise that come August 2013, when my CMG with-profits endowment matures, I'll post details as well.

*fingers crossed*, though I'm already pleased that the sum assured and reversionary bonus will take me to about 175% of what I paid in over the 25 years, even if the terminal bonus is nothing. Not great compared with the ludicrous projections made in 1988 but a lot better than my wife, whose W-P policy with another company looks like it will pay just 10-20% more than she paid in.

neilj203

Yes, it was 26 per cent. But whether the one we have coming out in December provides a similar figure is another matter.

COLOURBOUNCE

I take it that was 26% of sum assured amount only neil ?