Endowment maturing is it at risk

macca789456

Hi we have an endowment maturing dec 1 2012 with scottish amicable. Will the stock market falling effect the terminal bonus and therefore the final ammount.It was taken out to cover 11,500 pounds its surrender value on monday 14/05/2012 was 9,527 pounds we are tempted to surrender it so as not to risk it losing more value.The guaranteed bonus figure is 6,720 and the rest must be made up of part terminal bonus.Are last years profits used to set the final ammount and therefore might be guaramteed or is it possible to drop in value. What are peoples opinions on this. Thanks

TrickyDicky101

Terminal bonus will reflect value of the with profits fund at or close to the time the endowment matures. Last year's profits are not really relevant therefore - they may have led to a higher annual bonus being applied though.

JimmyTheWig

I don't know how your policy works but I do know that the stock market goes up and down. No-one knows whether it's going to go up or down in the next six months.
Today could be the lowest point from which it climbs steadily until December. Or recent falls could be the start of something even bigger. Or (probably) it will be somewhere between the two.

So assuming that there will be penalties for pulling out early I would say keep the policy as it is unless you think you can out-predict the experts.

COLOURBOUNCE

When the markets rise the TB stays static, when they fall the TB falls at a faster rate than the market. Minus growth is calculated using the latest Twizzle sticks and increased running costs. Good luck, macca, don't hold your breath.

castle96

my L&G with profits policy. 2 yrs to go Bonus notice this year shows £242 bonus added (£720 paid in !), and a further fall in the TB rate (59% now,, 65% last year). Still I keep paying the premiums.in the hope of a chunk of TB. Who knows.........