Scottish Amicable endowment

lordthornber

We have a 25 year Prudential (Scottish Amicable) endowment maturing in Oct. £47:90 pm. No mortgage so happy days, it currently has a fund (cash in) value of £15k and an estimated value of £26k. Despite a conversation with the Pru, I'm no wiser as to remotely what we may receive in 4 months. Any clues please?

fewcloudy

Long thread here...
https://forums.moneysavingexpert.com/discussion/3889479/anyone-with-a-25-year-endowment-which-matured-recently/p1
It's one of many, so if you search you will see other similar recent posts.

lordthornber

Thank you for this. 

dunstonh

Despite a conversation with the Pru, I'm no wiser as to remotely what we may receive in 4 months. Any clues please?

Crystal ball.   You can easily work out the minimum but impossible to know what it will be above that.

lordthornber

Cheers, it's just a curious thing that's all. My logical brain thinks they should have an inkling of an idea with 99% of payments made. 

Old_Lifer

You need to  know which type of endowment you have.   

It will be either 'with profits' or unit-linked.       If it is  with-profits it will be  either  conventional with profits   or unitised with profits.   If it is  unit-linked it will most likely be linked to a managed fund  as the policy was originally morgage-related.    A with-profits policy  usually has a terminal  bonus,  a unit-linked policy doesn't.

You can tell which type of policy you have  by looking at your policy or the latest annual statement.   If it says bonuses  it is conventional,  if it says  bonus units  it is unitised with profits   and if it just says units  it is unit-linked.

Typically, a Life Office will write to you regarding the maturity about 4-6 weeks before the maturity date.

lordthornber

Thank you very much for the explanation,  just looked and it's unitised with profits. 

dunstonh

lordthornber said:

Cheers, it's just a curious thing that's all. My logical brain thinks they should have an inkling of an idea with 99% of payments made. 

What is the stockmarket going to do tomorrow?

And the day after that?

And the day after that?

And the day after that?..... and so on.

Nobody knows.  And they do not hold the regulatory permissions to offer advice or opinion.    They can only stick to factual answers.  Hence why they cannot tell you.

lordthornber

dunstonh said:

lordthornber said:

Cheers, it's just a curious thing that's all. My logical brain thinks they should have an inkling of an idea with 99% of payments made. 

What is the stockmarket going to do tomorrow?

And the day after that?

And the day after that?

And the day after that?..... and so on.

Nobody knows.  And they do not hold the regulatory permissions to offer advice or opinion.    They can only stick to factual answers.  Hence why they cannot tell you.

Thank you. I understand that 100%, but when you look at the 2 figures 15k and 26k, the difference of 11k for the sake of 4 months seems ridiculous. As I say, just curious.

Old_Lifer

Take a look at your  policy document.     See if it mentions  a  'Market Value Adjustment'.    This is  device  which may be applied when markets  are falling  to reduce the value of the policy ,  so that those leaving early  by surrendering do not get more than their  'fair share' of the fund.     It would be normal for an MVA  not to be applied  at maturity or on death.

It is also  likely that  the   15k   does not  take into account the terminal bonus.

lordthornber

I keep my eye on the value by the Pru website. First looked online in March, on or around direct debit day it rises by £80 or so. It also went up two lump sums, one £400, another £200 ish. Since then  no lump sums, just a rise of £1:06p per day. No mention of an MVA as far as I can see. I'll keep you posted as I'm sure there'll be others interested.