Pru Compensation

Paul_Varjak

Editor:

Do you know of an online endowment calculator that I can use?

I have tried the MSN calculator but it asks for the Terminal Bonus 'Rate' but does not really explain what this means.

Here are my figures as of 29/03/2004:

Sum Assured: £2500.00
Guaranteed Bonuses: £6934.46p
Sum Assured+Guaranteed Bonus: £9434.46p
Total payable on death: £20396.96
Maturity: 01/02/2016
Monthly premium: £4.16p (net of tax)

In my case I suspect that the Terminal Bonus Rate may be:

(20396.96 - 9434.46) x 100
9434.46p

= 116.2%

EdInvestor

Hello Paul,

What company is your endowment with and what is the present surrender value? You'll need to ask the company about the TB (if any), but it's not related to the death benefit.

I don't know of any endowment calculator,I'm sorry.

Liz19

Editor wrote:

Trying to sell is quite a good way to get a free professional opinion on how your policy might perform.Sadly these days many endowments are of no interest to the TEPs buyers at all, so that in itself will give you an idea of what to expect.

We tried to sell two endowments Standard Life (13 year policy) and Scottish Amicable (17 year policy) and we couldn't find one company that was interested in either. Both were upheld as having been mis-sold and we have since surrendered them and used the money to pay off some of the mortgage before converting to a repayment mortgage.

Paul_Varjak

Editor wrote:

Hello Paul,

What company is your endowment with and what is the present surrender value? You'll need to ask the company about the TB (if any), but it's not related to the death benefit.

I do not currently know the surrender value. The endowment is merely for savings and I do not intend to cash-in. Just trying to determine likely value upon maturity.

When I got a surrender value on 17/08/99 it was £10,578.30 which was about half the amount then payable on death, but no figures for the amount of TB included in that.

The Policy is with the Prudential.

EdInvestor

Hello Paul,

IMHO it would be advisable to call them up and update the figures, then come back for a view.Things have changed a lot since 1999 (to say the least!) but the Pru's WP fund is not as badly affected as others.