DunstonH, please does this seem correct?

scotti

In March 2008, I posted the following

Please would you cast your eye over the following and give me the benefit of your professional opinion.

Should I stay or should I go?

After reading all the negative feedback on this forum regarding Phoenix I would be grateful if you would advise me the best way to proceed regarding this policy.

Endowment policy (1989) originally with LAS (Life Assoc. Scotland) then taken over by Alba, now held with PHOENIX

Unit linked endowment (funds invested in Managed Fund)
Sum assured £30 000
Surrender value £12 920.21
Matures 2014
Premium 43.46
Current mortgage rate 6.24% (Bank rate + 0.99)

Projected maturity value (Phoenix expect middle rate to be most likely achieved)

Low 3% 18 500
Middle 4% 20 400
High 6% 22 500

With grateful thanks for any advice you can give me

As of this month (policy maturing) Phoenix have given us a final figure of £16 800

Seems lowish to me?

Do you have any thoughts?

With many thanks

scotti

amnblog

It is a unit linked endowment (which means values can rise and fall every working day) this has probably spent the last 6 years growing at or below the lower projection figure of 3% per annum.


If you think the figure may not be correct, check with the provider.

TrickyDicky101

Equity markets across the globe tanked in the middle of 2008 so that would have followed your quoted surrender/projections.

dunstonh

As said by others above, the credit crunch/global recession say the markets fall by over 40%. Many markets (such as the UK) have not recovered to pre-credit crunch levels.

Your projection examples used 3%, 4% and 6% as annual growth figures. There are closer to the long term averages but dont take account of short term volatility. The credit crunch drops would have caused as drop of around 25% on your fund which would now be in surplus again but not enough to average out 3% a year since 2008.

scotti

Thanks all for taking time to reply

scotti