Pearl Endowment & Promise - Help!

dunstonh

Probably a reduction in the surrender penalty coupled with an addition of a small terminal bonus.

hedgehunter_2

As your policy gets nearer to maturity the surrender value is "blended" in the last 5 years so at maturity the surrender value and the guaranteed benefits become one and the same amount.

In this case it is not terminal bonus, because this policy only has a small amount of terminal bonus and would not make much difference to the surrender value.

This blending creates a step change in the policy value on the policy anniversary (2 April 2007).

Because your surrender value has increased you have to re-asses your position because if you add together the SV, the redress available and the remaining premiums and compare this with the guarantered benefits and the promise you will need less of a return elsewhere to be any better off.