Scot Am Endowment

sugarplum

I have an endowment policy I took out when I started working. It isn't attached to a mortgage and has always been used as a savings plan. I got my annual statement today and to be honest I haven't got a clue as to whether it's worth keeping or and wondered if some kind soul could explain it to me

I pay £25 a month. The plan was for 20 years and matures in Sept 2015.
The funds are split 50/50 between a Unitised With-Profits Fund and a Unit-Linked Fund.
This is was my statement said:

With-Profits
Min Death Benefit: £4,500
Basic Units (31/12/11) 2118.614
Prev Bonus Units 391.401
New Bonus Units 47.556
Total Value (31/12/11) £2557.57

Unit-Linked
Units 298.848
Value (27/04/12) £3285.83


Thanks for any advice!

TonyMMM

Check the documentation for any mention of a terminal bonus at maturity - that could make quite a difference to the final payout.

sugarplum

Thanks TonyMMM - I've had a look at the original policy and the statement and can't see any mention of a terminal bonus. All it says is 'This is an Amicable Savings Plan. We will pay a lump sum at the date of muturity or death' I'm keeping my fingers crossed for the date of maturity!!

Froggitt

ScotAm endowment taken out in 1995 for 20 years will be lucky to pay out what you put in IMHO.

If its was just a savings scheme, why did you choose a policy with life insurance?

sugarplum

I've no idea tbh. No real excuse, but I was young, the sales advisor was a friend and I just went along with what was put in front of me. I have a repayment mortgage and term assurance so the life insurance isn't needed at all.
Do you think I'd be as well to cash it in early?

Froggitt

I guess the "friend" omitted to tell you how much commission he made on the sale. Sounds like a cut and dried misselling case (young, no dependents, no mortgage, no life insurance needed)......but thats another story.

tbh, I suspect youre screwed if you cash in and screwed if you dont.

opinions4u

Froggitt wrote: »

ScotAm endowment taken out in 1995 for 20 years will be lucky to pay out what you put in IMHO.

Although the current value appears to be more than the premiums paid in?

Froggitt

Slightly tongue in cheek.

17 years x 12 months x £25 = £5,100.

Current value about £5,800.

Thats annual growth well less than 1%.

Appalling.

sugarplum

I just phoned up to check whether there is a terminal bonus (yes) and for a surrender value, which was £7019 - not as bad as I thought then