Versatile Endowment plan (with-profits policy) with Scottish Widows

Ifts

Just a heads up for anyone comparing returns on their with profits policy.....

20 years ago I took out a with profits policy with Scottish Widows.

It was for £50 a month, total paid in over the 20 years £12000.

It has this month matured and the final maturity value I got back is £16360.

Sum Assured - £10220
Vested Bonus - £3343
Interim Bonus - £31
Terminal Bonus - £2766

Total Value - £16360

It did also provide death benefit during the term of £9000.

Also during the term of this WP policy as an added bonus due to the Scottish Widows Demutualisation back in 2000 (when the insurer Scottish Widows was sold to Lloyds Bank)
I got a windfall payment of just over £2000.

wakeupalarm

So that works out to just over 3% per annum plus the free shares.

Ifts

Yes not a great return, just glad to have got back more than I payed in.
The windfall payment from them was in cash not shares.

A regular savings account would have been better, you live and you learn (one hopes)!

jamesmorgan

wakeupalarm wrote: »

So that works out to just over 3% per annum plus the free shares.

Close, but you need to remove the life cover element first. No idea of the cost of this in this specific policy, but if you were to arrange separate life insurance for £10K of cover it would cost you about £5/month. Once this is removed from the monthly premium, the annualised growth rate is around 3.9% (or 4.9% if you include the benefit of the free shares).

McKneff

I think youve done better than most people to be honest.

specially with the windfall payment and life insurance and getting more back than you paid in.

Some only get the death benefit protection and nothing else.
Thank the Lord that your wife didnt have to claim on it lol, now that would really have peed you off lol