Endowment maturing advice

Jurgen500

My 25 year endowment policy ends on 26 December. All premiums paid over that period. I paid off my mortgage years ago but kept it going for both the life cover and nest egg at end of term. Imagine my surprise when Aviva sent me a letter confirming my last premium was paid and that the cash in valus was £26k yet the value tracked on their web site indicates £41k including final bonus based on the current market value of the units.

Plus the value they state in their letter is less than i have paid in, in premiums

So my question is, why such a huge difference? Am I being shafted?

dunstonh

So my question is, why such a huge difference?

Is your plan invested in a with profits fund?

If so, there are two values. The current value doesn't include the final bonus accrued to date. You need to look at the higher surrender value.

Jurgen500

Yes, its a with profits. Their web site indicates fund value of £35k with a final bonus of £6k. Total £41k (surrender value). The letter states projected cash-in value of the policy on the date of the letter (thus before it matures) of £26k. Surely this cant be right?

Maybe they are trying to entice me to cash in early (which I wont, of course)

dunstonh

Surely this cant be right?

The letter is not right.

Maybe they are trying to entice me to cash in early (which I wont, of course)

They are not that clever.

Jurgen500

Thanks for your help. Will contact them Monday to seek clarity!

MAnderson70

Hi, I'min a similar position to Jurgen, so thought I'd ask in here rather than clog the board up with another thread.

My Endowment is up on 8th January and seem to be getting mixed messages from Aviva (Initially it was with Friends Life). My bonus statement in January stated that the cash in value at that time was £29k (also same figure was supplied in September as a death valuation). I've managed to clear some of the mortgage so this would have left me with a nice wee sum. However, I've received a cash in quotation today and this only states that the cash-in valuation is £27k. Part of it is With Profits.

On my Yearly statement in January, it showed 2 sets of figures. One stated a total guaranteed amounts plus bonuses was £16185.39, the other £4724.61 giving £20910.00. I'm taking it that this is the value of the non 'with profits' element added in?

Unfortunately I can't seem to register with Aviva to check my policy and see if they can give me a total fund value. It just seems that whenever I phone and ask for either a verbal or written quote, the amount changes each time. Is it possible that my final bonus payment could be as high as £7k or more??? It was a 25 year policy.

Many thanks in advance for any help you can give.

dunstonh

My bonus statement in January stated that the cash in value at that time was £29k (also same figure was supplied in September as a death valuation). I've managed to clear some of the mortgage so this would have left me with a nice wee sum. However, I've received a cash in quotation today and this only states that the cash-in valuation is £27k. Part of it is With Profits.

That sort of movement is quite small and not unexpected. Values are a bit down off the high points seen earlier in the year.

On my Yearly statement in January, it showed 2 sets of figures. One stated a total guaranteed amounts plus bonuses was £16185.39, the other £4724.61 giving £20910.00. I'm taking it that this is the value of the non 'with profits' element added in?

Surrender value includes terminal bonus accrued to date. Current value does not.

Jurgen500

I contacted Aviva and they clarified. Basically the value stated in the letter did not include final bonus and they confirmed the web site data as correct in terms of what i would get (subject to actual unit values on the day). Will let you know in 2 weeks on the actual outcome