Endowment Policy maturing shortly after Brexit vote

nfr

I have a Mortgage endowment policy that matures at the end of July this year. The policy is a 25 year policy originally through Woolwich (Barclays now) and managed by Reassure.
The specifics or the policy are quoted as 'BL Life Managed Series 4'

I now have a repayment mortgage so my question is not about sufficient funds to pay back a loan, it is simply about getting the best return on the policy.
I have received a maturity statement, but it states that the bid price on the policy may rise or fall between now and the maturity date.
My question is simply - with the Brexit vote looming, should I be worried about any stock market wobbles at this point or shortly after the vote which could lead to a further loss on already a poor returning policy?

Many thanks
Nick

AnotherJoe

First there's nothing you can do about it now so whether or not you worry won't affect the outcome so try not to. If it's a unit trust based policy which you could cash in now without forgoing any terminal bonus, then are you also considering cashing in your pension investments into cash?

Secondly there have been numerous stock market wobbles along the lifetime of you policy, brexit is just another one and is mostly priced in already.

Third, betting currently shows a very high probability of a stay in which case there will likely be a slight rise so you would be going against the odds by selling

Last, if you think, for example that your policy would drop by say £15,000 were the result to be leave, and this really is a concern, then take out a bet that will give you that much return on a leave, because by selling the policy now you'd equally be betting with the policy and would lose on a stay vote when it bumped up a bit.

dunstonh

I have received a maturity statement, but it states that the bid price on the policy may rise or fall between now and the maturity date.

The prices change daily. Sometimes up, sometimes down.

My question is simply - with the Brexit vote looming, should I be worried about any stock market wobbles at this point or shortly after the vote which could lead to a further loss on already a poor returning policy?

Last Autumn, there was a stockmarket crash of 20%. Yet to recover from that. Were you worried about the endowment when that happened? It is likely that a Brexit wouldnt be anywhere near as bad as that on the stockmarkets.

However, being a unit linked endowment, you can always switch to the deposit/cash fund.

nfr

Thanks you for the responses. As you have stated i have little option now anyway, so will just have to wait for maturity to see the value on the day, but your comments do give me some reassurance.

One thing that i still don't understand is matters surrounding the commonly mentioned topic of Terminal / Final Bonuses. I've looked at all my original paperwork and cannot see any mention of this.
My recent maturity statement details number of units held and bid price for each unit. The two multiplied together give the claim value.
Can I expect to receive any additional funds as Terminal / Final bonus or is the figure quoted the full amount I can expect - accepting fluctuations between now and maturity of course.

Thanks
Nick

TrickyDicky101

Because your policy is a unit linked endowment, there will be no terminal bonus as the value is directly linked to the price of the units at the time of surrender/maturity. This contrasts with a traditional With Profits policy where 'smoothing' can occur which means the ultimate money you receive is partially de-linked from the strict underlying fund value.

amnblog

You can only guess at the market position and unit price on the day of maturity Nick.

You may have the option to switch now to a cash based fixed interest fund, although watch out for costs.

Such an action may prove detrimental of course if unit prices in the managed fund rise.