Cashing in Endowment Early Scottish Amicable

paulo1888

Hi, I have an endowment from Scottish Amicable taken out in 1990 to cover £25,000. It is due to mature in June 2105. The projected shortfalls on my red alert letter are as follows (2014 figures) 1.5% growth £18,300. 4.5% growth £18,900. 7.5% growth £19,600. I know that it's not usually a good idea to cash in an endowment early, but the cash in figures that Scottish Amicable have quoted today are £18,600, £19,000 and £19300 respectively. The company are saying that these figures include the Final Bonus. I am a bit confused by this. I thought you really had to leave you endowment running for the full course to make sure you receive the full maturity value. Does anyone know why they would include the final bonus 6 months early.

Any help would be appreciated.

Thanks

TrickyDicky101

It's common to include an element of the final bonus if you surrender early to represent your asset share of the with profit fund you are invested into.

paulo1888

Sorry, part of this doesn't make sense. It should have read "the cash in figure that Scottish Amicable are offering today is £18,280. The figures of £18,600, £19,000 and £19300 are future projections should I let it run it's course. Once again I am wondering why it is a big no no to cash in an endowment early, as there doesn't seem to be much difference cashing it in 6 months early. I am left wondering if there is something hidden at the end that I don't know about. Many Thanks for any help