Scottish Amicable Endowment

paulo1888

Hi

I have a scottish amicable endowment target amount £44,000 which will mature in 1 year (may 2105)
I know it's impossible to predict but a really cannot understand the complexity of how these work.

My 3 projections are (Shortfalls)

1.5% each year £11,600
4.5% each year £10,600
7.5% each year £9,400

Would I be correct in thinking that because there is one 1 year left to run I can expect a shortfall of between £9,400 - £11,600.(There would not be much time left for growth)
The reason I am asking is I am unsure if there would be any final amount added to this at the end. I am just looking for someones best guess so I can do a bit of forward financial planning.

Many Thanks

dunstonh

The figures are just examples and not guaranteed. They could be higher or lower than those.

The figures may or may not include the final bonus accrued to date. Some endowments only projected from a value that did not include the final bonus. This typically understated likely maturity values. So, you would also need to look at the current value and surrender value to see if that is likely.

Stratus

According to FTAdviser.com, in February this year a £50 per month Scottish Amicable endowment over 25 years was paying out £33 414 including a 28.1% terminal bonus. This is down from the £35 147 it paid out in Feb 2013.

stulaunch

I've just had my Scottish Amicable (Pru) maturity letter through yesterday.
Was paying £23.37 for 25 years and are receiving £14244
It was just over £3000 short.
Not sure what what % terminal bonus was but on £6029 sum assured the TB was £4145

Hope thats of help to you.

paulo1888

stulaunch wrote: »

I've just had my Scottish Amicable (Pru) maturity letter through yesterday.
Was paying £23.37 for 25 years and are receiving £14244
It was just over £3000 short.
Not sure what what % terminal bonus was but on £6029 sum assured the TB was £4145

Hope thats of help to you.

That is really helpful information. Can I just ask you this. You were just over £3000 short. Was this roughly what you were expecting according to the estimated projection letter you received a year ago?

Did this £3000 fall in between the 3 levels 4%, 6%, 8% ?

Again, many thanks to all for the helpful replies

wanderer7

Stratus wrote: »

According to FTAdviser.com, in February this year a £50 per month Scottish Amicable endowment over 25 years was paying out £33 414 including a 28.1% terminal bonus. This is down from the £35 147 it paid out in Feb 2013.

That is fantastic news, but I have the same policy maturing in dec 2015 and have been receiving red warning letters for 6 years