Phoenix Endowment

sgb479

Hi,
Advice needed please,
We have 5 yrs to npay on our 3 endowments with Phoenix(ex Britannic !!!).We have had red and amber alerts and swapped the mortgage to part/part about 5 yrs ago.The endowments now stand to pay £39,688(paid-up value) to cover £33,000 on interest only.
My question is,should we make these policies paid-up and use the premiums(£78)to increase our mortgage repayments or hold out in the hope of a terminal bonus?
Our bonuses for 2006 totalled £99.99 against a sum assured of £18,142,which is 0.55%.
Any help much appreciated
SGB

EdInvestor

Post some more info

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly payment
maturity date
maturity forecasts

interest rate payable on mortgage

JoeK_3

Contact the endowment providers and ask them for a projection of benefits to the end of the endowment.

Ask for accrued terminal bonuses to be included or shown separately in these figures.

When requesting a surrender value, do ensure that all bonuses are included.

JoeK

sgb479

Hi, thanks for replies
Guaranteed sum assured =£12432,£4004,£1706
Declared bonuses=£10654,£1,329,£1,569
Surrender value=£20,884 £3,745 £2,568
Monthly payment £48.40,£22.36 £7.20
maturity date all policies 01/05/2012
maturity forecasts 2.75%=£27,900,£6130,£3,620
6.75%=33,600,£7,270,£4,350
interest rate payable on mortgage 4.69% fixed till Sept 08

sgb479

To Ed Investor,Joe K,
Thanks for the replies, I have posted details of the 3 policies above and have asked Phoenix for projection of benefits
SGB

EdInvestor

sgb479 wrote: »

maturity forecasts 2.75%=£27,900,£6130,£3,620
6.75%=33,600,£7,270,£4,350

If you surrendered the policies now and used the lump sums to reduce the mortgage owed, increasing the mortgage payments by the endowment premiums so as to overpay the I/O bit, then your total return at maturity would be 29519/6198/3704 = 39,421.That compares with their forecast range of between 37,650 and 45,220.

I suggest you ring them up and ask for a run down of the asset mix of the With profits fund it is invested in - how much (%) is in equities, property, bonds and cash.That will give us an idea of its likely performance to maturity.

While it's not a worldbeater by any means, this might be a slightly better endowment than the usual Phoenix zombie.

wannabemoneysaver

Could anyone help me decide whether to cash in or retain my endowment ?

My details are as follows :

Taken out with Royal and Sun Alliance on 1/2/1994 (low start)

Maturity Date : 1/2/2015

Sum Assured : £42000
"Amount on which basic bonus is calculated" £17808
Monthly Payment = £100 / month
"Total Bonus Earned to 31/12/06 : £3870.79

Projections as at May 2007 :

If growth is at 3.25% each year : £26700
4.00% £28000
5.00% £29000

New bonus paid last year was a whopping £54.06.

Seems like a no-brainer to cash it in, but with the surrender penalties...I don't know. My IFA seemed a little perplexed and told me to "wait and see how it goes in the next few years"....

Have already converted £12000 of the £42000 to repayment in anticipation.:rolleyes:

Anyone who can make sense of all this?

dunstonh

Most pheonix ones are naff and low start endowments even more so. We dont have a enough data to do a calculation and estimate for you but I wouldnt want to keep it based on the little you have posted.

wannabemoneysaver

Is there any more info I need to get to make a decision?

In broad terms, I'm thinking with 8 1/4 yrs left at £100 / month , thats £10000 left to pay to get about £25-£28000 back?

I know if you surrender these things you get screwed by the early redemption penalties...

digipeep

Hi, 1st post here and I have a Phoenix endowment which was originally an Abbey National policy. It is 12 years in and currently is about £8.5k to pay off £35k in Sep 2019. I'm just waiting for my statement, should be next week so I'll post up some figures etc.

I guess as it looks really poor I'll surrender it, I doubt from what I've already read here on Phoenix endowments that it is worth trying to sell it.

wannabemoneysaver

Hey digipeep - How did you get on?? Still wondering what to do with mine and I can't seem to get a definitive answer as to whether to keep or sell !