Clerical Medical Low Cost Endowment

neilj203

Terminal Bonus is always a percentage of both Sum Assured and Revisionary Bonuses accrued.

CMSteve

Hi guys thanks for the info on endowments its very interesting.
I have an endowment due from Clerical Medical on 26th June this year and was wondering how much the shortfall would be.
It is a 25 yr policy and have been paying £39 a month.
The Total Initial Benefit is £30000
The Guaranteed Cash Benefit is £10110
On the 2011 statement the New Reg Bonus is hovering around £132.00 & Total Reg Bonus stands at £8303.
There is a T in special codes so i presume this indicates a bonus at muturity??
I realise there will be a shortfall but naturally hope it does well, but i can't really complain because i was lucky enough 5 yrs ago to sign up to a mortgage that tracks the B of E rate at 0.19 % for the life of the mortgage which incidently finishes in Aug 2015 so i'm only paying £28.70 a month on £50.000 loan.
i also have an endowment for the extra £10.000 and that too is predicting a shortfall.
I had a sucessfull claim for £5500 in 1999 for misselling from the Halifax so all in all i suppose it could be a lot worse..

TriathNanEilean

TriathNanEilean wrote: »

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

Not quite maturity date but I got a letter from Clerical Medical today telling me what my benefits will be:

1. Sum assured: 12132.00
2. Reversionary bonus: 9891.40
3. Terminal Bonus: 5065.40

1. Total: 27088.80

So the terminal bonus works out as 23% - a little down on the 26% that neilj203 received a year ago but I'm content enough with it. And am glad I began repayment mortgages on my 2nd and subsequent flats since the sum above isn't the £36000 that it was in theory supposed to repay 25 years ago. The total works out as almost exactly double what I have paid in over the 25 years. Other minor stuff:

• They say they don't need to see my Policy Document so I've just to destroy it after I receive payment. Maybe that is different from brewerdave's experience in this thread due to how long I've been at current address or other ID considerations linking me and the address.
• neilj203's stuff about them preferring posting a cheque but sending a form if I want some electronic transfer was the same for me. I think I'll stick with the cheque just in case CM manage to mistype bank details. Slightly less chance of a problem just getting it posted I think.

Hope the info is useful to someone. Good luck anyone with a policy still to mature.

TriathNanEilean

TriathNanEilean wrote: »

Not quite maturity date but I got a letter from Clerical Medical today telling me what my benefits will be:

1. Sum assured: 12132.00
2. Reversionary bonus: 9891.40
3. Terminal Bonus: 5065.40

1. Total: 27088.80

I feel like I'm flogging this thread to death but, since I've got this far, might as well see it through...

The cheque arrived a few days ago (a month after my last post above). It was for £660 or so more than the letter I got last month promised. Sweet. Presumably they slightly increased their terminal bonus in the interim. So the final total was:

£27,749.50

I found a compound interest calculator and discovered this to be slightly more than 5.11 % interest over the 25 years (assuming interest was compounded monthly on the £45.60 I paid every month). Not too bad a rate of return, though not wonderful either.

dunstonh

The cheque arrived a few days ago (a month after my last post above). It was for £660 or so more than the letter I got last month promised. Sweet. Presumably they slightly increased their terminal bonus in the interim.

The final bonus can be amended daily. As it was not at maturity, any earlier figure would be based on the day it was issued. So, you would expect a difference.

Not too bad a rate of return, though not wonderful either.

For a low risk fund, that is not a bad net return which also included the cost of life assurance. Problem with endowments is not that they have provided bad returns. It was just that they were given target growth rates that we now know were unrealistic for the period. They were fine for the previous decades but not the decades that followed.