should i surrender endowments? Mortgageman

dunstonh

The markets have gone up and down a bit since then and the final bonus lags behind real time events so looking at it that frequently will just make you angry.

You are correct that your worse case scenario is that guaranteed sum assured plus reversionary bonuses. (well worst case is SL going insolvent but lets not go there).

Plus as we covered before, your projection at 4% gives you a lower value than your guaranteed minimum so we know that the SL are using the surrender value to project from. This is inaccurate.

In most cases, using the 4% rate of return on endowments would be prudent but I would like to see projection rates altered to 3%, 5% and 7% and the low equity with profits funds forced to use 3% rate as the likely average return (before charges).