endowment questions

blue_peter_3

Hi folks,
new to this as well.
I have four endowments:-
all through same lender & insurance company.
Start date 1983 mature date 2005 on track for £14000
Start date 1984 25 years target amount £5500 shortfall @4%=1000 @6%=500
Start date april1988 25 years target amount 36500 -shortfall @4%=13500 @6%=9600
Start date 1992 25 years target amount 14000 shortfall @4%=6000 @6%=4500

Total target amount = £70000 interest only mortgage
total shortfall at 4%=£20,5000 @6%=14600

could anyone please advise or comment on the figures outlined below.

a 1992 bonus statementfor£365000 refered to the bonus rates as 3.0% on the w/p sum assured of £12500 and 5.5% on the existing bonus of £2500 these gave values of £375 & £137.5 =£512.5 total
a nice healthy sum i assume. my 1999 bonus total was £350 declining but ok
whereas the 2004 bonus statement refers only to 0% bonus on w/p sum assured & 0.5% on the existing bonus a diminutive total of less than £40

having read with interest some of the postings & responses can anyone advise me how the bonus rates are calculated against the insurance companies profits & investments? even during reported poor stockmarket trading.
also is there a simple calculation for working out a repayment mortgage comparison over the life of an interest only loan.

im asking a lot i know but im baffled
im planning on a new mortgage arrangement probably with the same lender once 2005 pays out & then taking action on the remaining policies.

q. would any financial redress in respect of a misselling claim effect final bonus payouts.
q. the final bonus on these policies are not guaranteed, how do they accrue?

any help would be much apprieciated.
cheers

EdInvestor

Hello bluepeter

Welcome to the opaque and baffling world of With profits, where actuaries with crystal balls perform magic tricks with your money. Is it all smoke and mirrors? 'Fraid so.

No answers to your questions about how it's all done - but post the following figs for your policies and we'll see how they measure up and what might be done.

Insurance Company
Guaranteed sum assured
Attaching bonuses so far
Surrender value
Monthly premium
Maturity date
Terminal bonus amount in policy (if any)