Scottish Amicable Endowment - Payment Of Further Bonus

radiouser

Hi Hansi,
I will be pleased to keep you informed of what happens but I guess I cannot do much about it until it matures.
With regards a shortfall, I have recently been informed that I will likely have a £1500 shortfall on a £15k policy…….my first RED letter after 24 years with the policy.
I wonder what the shortfall would have been WITHOUT the added SA money!

Regards :beer:

radiouser

hansi

radiouser wrote: »

Hi Hansi,
I will be pleased to keep you informed of what happens but I guess I cannot do much about it until it matures.
With regards a shortfall, I have recently been informed that I will likely have a £1500 shortfall on a £15k policy…….my first RED letter after 24 years with the policy.
I wonder what the shortfall would have been WITHOUT the added SA money!

Regards :beer:

radiouser

It really is amazing how two policies taken out in the same year produce different end results. I had a 25k policy which was £600 short, and you have a 15k policy which could well be £1500 short. It's quite remarkable considering they have probably both been invested the same way. How do they explain that?

radiouser

Hi Hansi,
I have just checked my red letter and it was in fact issued in August 2009.......where has the year gone?
I have no idea whether the value will have gone up or come down since then, fingers crossed it will be in my favour.

radiouser

Gillingham

O heck! Please help! I am new to posting on here and I'm not very clued up on endowments but I think I need some help.

I have two SA homebuyer policies. One is for £16,500 and was taken out in August 1886 and the other is for £13,500 taken out in May 1989. The first one was over 25 years and matures in August 2011. The second one was for 22 years and matures in May 2011. This was done when we moved house so the mortgage would be finished in the same year.

I have just had a statement and the combined value of the policies is £19,000. As they both mature next year they look like being very short of the target amount of £30,000. I did expect some shortfall, but not that much! I have paid just over £5,000 off the mortgage, but it looks like even that won't be enough.

Like I said, I don't understand all the fact and figures, but does anyone think the final bonus will bring the policies up to anywhere like £30,000?

Even better, does anyone know how I find out?

Thanks again.

Gillingham

Sorry, I forgot to say that these figures are from a statement received a couple of weeks ago, so are up to date.

hansi

August 1886, that's a long time ago;) Thta's a very poor return, but no doubt Mr Dunstonh will bge along shortly to advise you. Guess I was very lucky with mine

Gillingham

I've realised I should have given more accurate information, so here goes:

Date of Maturity 11/08/2011 (£16,500) - £10,858.54 as at 31/12/09 (new declared bonus was £120.41)
Date of Maturity 11/05/2011 (£13,500) - £8,507.88 as at 31/12/09 (new declared bonus was £89.42)

As you can this is really poor. I am paying £24.10 per month on the £16,500 policy and £24.62 on the £13,500 policy. Am I just pouring money into a bottomless pit?

I am one of the lucky people who dropped onto the base variable rate when my fixed rate ended last year. I am currently paying my interest only mortage at a rate of 2.5%, hence I am paying an extra £240 a month to try and help with the shortfall. I also borrowed an extra £10,000 in October 1999 when I moved again. This was put on a repayment plan and I have now paid this off.

It's the terminal bonus bit I don't understand. £19366.42 is a bit scary when you consider I still have to pay £289.20 and £221.58 into the policies in view of the poor bonus declared.

The figures on the 'conventional with-profits statement' seem to bear no resemblence to the mortgage endowment plan update which we received last month. The total shortfall shown there for both plans is £3,800 @ 4%, £3,300 @ 6% and £2,800 @ 8%. However these figures look ridiculous in the light of the recent bonus paid.

Any help would be much appreciated. I am having to deal with these matters as my husband is very unwell at the moment. To be honest, I think he has been burying his head in the sand about this.

Thanks again everyone.

Gillingham

I have just contacted the Pru (first time in all the years I have had the poicies).

The values seem to be dropping faster than a stone. The previous values quoted were from June and a month later they have dropped to:

14,800 @ 4% 15,100 @ 6% 15,400 @ 8%
11,300 @ 4% 11,400 @ 6% 11,600 @ 8%

as they say 6% is the most likely outcome this means a drop of £200 since last month.

The customer service representative quoted a surrender value of £14,075 (against the £16,500 policy) and £10,783 (against the £13,500 policy). This is a total of £24,858. She was somewhat vague as to whether there would be any charges to come out of this amount.

This is £1642 less than the projection (at 6%) should I wait until maturity. As I will be paying £289.20 and £221.28 in endowment premiums and £59.72 a month mortgage (£597.20)until May and then a lesser amount (after the smaller policy pays out) until August 2011, it would seem I might be better off cashing these policies in now. As of today my mortgage stands at £24,955.

Gillingham

radiouser

radiouser wrote: »

I have been following this topic with interest for sometime now and I’m not sure that bennyboy3’s original question regarding the “further bonus” has been fully answered.

I have a 1985 Scottish Amicable with profits endowment policy which is due to mature in October 2010 and it was always my understanding that, as bluefrew2 indicates, that a “further bonus” over and above the “special bonus” was payable at maturity.

I have retained all the paperwork relating to this policy since inception and wonder if anyone can throw any light on the matter?

Regards

radiouser

Getting very close to maturity time, can anybody please throw some light on this "further bonus" issue?

Regards

radiouser

hansi

I would like to know that too. My policy matured in May of this year.