Zurich adaptable endowment

jubilee14

I have a policy that I took out a 25 year policy with Allied Dunbar and have 4 years left. Not linked to paying a mortgage anymore. Does this policy have a terminal bonus or just pay off whatever the sum is. Now less than 5 years to go statement says it will achieve 14.8k against target 20k based on4% growth. Very little info to be found online from Zurich. FA is long gone.

Any info appreciated

Robinette

I used to work for Allied Dunbar and am not aware of the adaptable endowment plan having a terminal bonus. As far as I am aware, you can surrender it for the current value, less any charges, or keep it going until the end of the term and take the current value without incurring any charges.

jubilee14

Thanks for clarifying.

dunstonh

Does this policy have a terminal bonus or just pay off whatever the sum is.

Allied Dunbar was a unit linked company. Not a With Profits company. So, no bonuses.

Now less than 5 years to go statement says it will achieve 14.8k against target 20k based on4% growth.

Remember that is not 4% net of charges but 4% before charges and cost of life assurance. So, in reality, its around 2.x% growth. Most middle risk multi-asset funds have been running around 5-6% p.a. after charges. Whilst future returns are unknown, the 4% projection is understating the long term return. Although you only have short term left.

jubilee14

Thanks knew early days it wouldn’t reach target but as it’s not linked to a mortgage it’s not an issue.