Scottish Amicable endowment

dunstonh

With unitised with profits funds, you get the unit value. This is guaranteed as long as you stay to maturity.   However, if you surrender the policy early you can be subject to a surrender penalty and/or a market value reduction.     
In addition to this, you get a final bonus. This accrues alongside the plan and is not guaranteed. It will go up and down throughout the policy life.   It can drop to zero.

The current guaranteed position is that of the unit price x units.  You cannot get any lower than that on maturity (caveat as some plans take charges out of the unit price and others take it out by selling units - However, that is small fry).    
The current non-guranteed position is the unit price x units + final bonus accrued to date.
The surrender value is the unit price x units + final bonus accrued to date minus a market value reduction minus the surrender penalty.

lordthornber

Thank you for that explanation. By coincidence I've received a Plan information letter today.
Fund value   £14770
Final bonus £11296 (not guaranteed)
Total            £26066
So I'm quite pleased with that, it was to pay off £28k but that's history. Thank you for all the responses.

lordthornber

Just for info, Prudential have just informed that they will write to us 8 weeks before Maturity date (Oct 6) with further details of value and payment options. Excellent.