Help me understand my endowment statement!

andy768

Hi,
I have been recently looking over my mums endowment mortgage to help plan for the future. Her last statement for one of the £5000 endowments (Scottish Provident) reads:
Basic with-profits sum assured £1725 and
Annual bonuses - 2006 addition nil, new total £1689.80.
This may be a stupid question but can I assume that when it matures in 2010 she will receive the total of the two values - £3414.80 (plus anything added since then), there shouldnt be any deductions upon maturity?
Thanks

EdInvestor

Total at maturity should be sum assured plus annual bonuses plus (hopefully) a terminal bonus - but the latter is not guaranteed.

Ring them up and ask the surrender value now and how much TB is included in that for a guide.

shaunrc

Hi Andy

The next step is to ask Scottish Provident where the money is invested. The reason why I ask this is that many of these type of funds have changed their strategy since 9/11 and are not the same animal that people started with.

The investment strategy has implications for the likely return on her money as some of the funds are now rather unlikely to grow much.

Hope this helps!