L&G With Profits Endowment

you_llneverwalkalone

I have an L&G with profits endowment that matures in October 2022.


I have received my yearly statement for 2018 and last year L&G,s investments performed badly. The returns for 2018 were -3% so my endowment suffered compared to previous years.


Target amount £35k
Monthly payment £55
Current value £15k
Current surrender value £19k




I am wondering as to whether it,s worth keeping or surrendering. There definitely will be a shortfall but luckily not it,s attached to my mortgage anymore.


Thanks for your advice!

dunstonh

and last year L&G,s investments performed badly.

Did they perform badly? Most L&G funds performed in line with the markets they invest in.

The returns for 2018 were -3% so my endowment suffered compared to previous years.

So, it sounds like your funds did well then as the falls in 2018 were greater than that.

2018 was a negative year. You need negative years with monthly premium plans to get higher returns.

Fuzzy39

Do you get life insurance with it and is it one that offers a possible bonus on maturity? If so it might be worth keeping.

you_llneverwalkalone

dunstonh wrote: »

Did they perform badly? Most L&G funds performed in line with the markets they invest in.



So, it sounds like your funds did well then as the falls in 2018 were greater than that.

2018 was a negative year. You need negative years with monthly premium plans to get higher returns.

Thanks for your reply.


So you think it would be better to keep it going?

you_llneverwalkalone

Fuzzy39 wrote: »

Do you get life insurance with it and is it one that offers a possible bonus on maturity? If so it might be worth keeping.

Thanks for your reply.


Yes it has life insurance with it but i,m not sure if it pays a bonus on maturity.

Old_Lifer

I can understand if someone surrenders an endowment to repay debt or needs to raise money for a specific reason but if you do not need the money may I suggest that you think carefully before surrendering a with-profits endowment which is approaching maturity.


Most with-profits endowments pay a terminal bonus at the end of the term (at maturity). The surrender value is the amount you will receive if you cancel the policy before maturity.


The Forum has plenty of posts from holders of maturing with-profits endowments who, despite the gloom and doom of recent years, are pleasantly surprised with the maturity payout they receive.

you_llneverwalkalone

Old_Lifer wrote: »

I can understand if someone surrenders an endowment to repay debt or needs to raise money for a specific reason but if you do not need the money may I suggest that you think carefully before surrendering a with-profits endowment which is approaching maturity.


Most with-profits endowments pay a terminal bonus at the end of the term (at maturity). The surrender value is the amount you will receive if you cancel the policy before maturity.


The Forum has plenty of posts from holders of maturing with-profits endowments who, despite the gloom and doom of recent years, are pleasantly surprised with the maturity payout they receive.

Thanks for the advice.


I,ll leave it running and hopefully it gets a bit closer to it,s target amount.

Hodge58

Most with profit plans pay a terminal bonus. The percentage of bonus varies from insurer to insurer but as an example the old Norwich Union bonus was 52% of all bonus in some years. L&G has generally been middle of the road for bonus but phone them and ask what last years terminal bonus was

Old_Lifer

The rate of terminal bonus depends upon the type of policy and the length of time the policy has been in force.


It is quite normal for a Life Office to have a range of different terminal bonus rates for the same type of endowment. The longer the endowment term, the higher the rate of terminal bonus payable at maturity.

Old_Lifer

To add to my last post.


Where a policy is altered to with-profits during the term, eligibility for terminal bonus commences on the date of alteration.


This most commonly happens with a unit-linked policy, where a switch option is exercised and the policy is changed from a unit-linked fund to unitised with- profits. Although less common with a conventional policy, a situation could sometimes arise where a without-profits policy was converted to with-profits.

you_llneverwalkalone

I received a letter from L&G today stating they are selling/transferring it,s insurance based savings, pensions, life & with profits business to ReAssure Ltd. If the high court approves the transfer in October then all policys will transfer to Re-Assure on the 4th November 2019.

Looks like my endowment will pay out the bare minimum now then! :mad:


https://www.legalandgeneral.com/policytransfer/