Aviva guaranteed min.cost endowments

DARKMARK

Hi...I am currently paying into 2 of the above "with profits fund" Endowments....which were originally set up to cover a £43k mortgage.
They were set up in April 1994 and are due to mature in April 2019.
Over the years I've changed my mortgage but I've still kept paying into these as a form of savings.
The main questions for me are ...am I wasting my time and money!!
And any idea what I can expect to get?
I am hearing horror stories of people not being paid their final bonuses!! With 5 years still to go paying £67.96 a month I don't want to waste my money!!
I appreciate that they won't reach £43k but if I can expect around £30k I'll probably keep them going!

Imma_Number

Do you have a Mortgage Endowment Promise with that policy?
It could be that the MEP is greater than the remaining payments.

holly_hobby

What are the current attaching bonuses, as per your latest policy statement ?

Holly x

cheshire_bird

My endowment has just matured. Was originally taken out for £40k, actually got £31k. This included an MEP of £3600.
Obviously I would have liked the full amount but it could have been a whole lot worse if the initial predictions were anything to go by.
I only ever had a repayment mortgage so it was more of a savings vehicle. It simply allowed me to clear the mortgage with a nice lump to spare.
If your bonuses are reasonable upto now & you have a good MEP, I would advise to keep it. I was told to get rid from very early on & many of my friends did.
So glad I kept it going, especially for such a relatively small monthly outlay.

Hope this helps.

DARKMARK

Thanks for the replies!! I believe they do have a MEP but I'm not sure of details unless I dig out paperwork! Think they made the promise quite a few years ago now!
The yearly bonus payments are currently only about 0.5%!!
I was keeping them as I'm hoping the Final Bonus Payments and the MEP will push the payout up a bit!!
I will have to dig out some paperwork so I can answer the questions from your response!
Thanks again for the replies...as I'm really not sure what to do!!

DARKMARK

My endowments are one for 32k which has a current bonus amount of £2,904 and a Basic Sum Assured of £14,480
It's current Surrender Value is £15,451
The other is £11k which has current bonus of £968 and a Basic Sum Assured of £4,827
It's current surrender value £5,188
Hope the figures help!!

Imma_Number

The MEP amount should be on the same page as the 4, 6 & 8% projections (at least it is on mine)

Over the next 5yrs & 5month your payments will be £4417.40. My guess is your MEP will be more than that.

The annual bonuses are guaranteed and can't be taken away. I've read that instead of having bigger guaranteed bonuses any underlying fund growth is being shunted to the final bonus, but as you are aware the final bonus amount is rather opaque to say the least.

There is a list of conditions for the MEP at the back of the projection letter in the "Answers to some of the questions you may have" section.

I too am hoping for a reasonable final bonus.

DARKMARK

Thanks for your reply! I'll dig out and re-check the details for the MEP!

cheshire_bird

My final bonus was £4532.

DARKMARK

Cool! Maybe I'll just sit tight! Still undecided!! Lol