Scottish Amicable Endowment - Payment Of Further Bonus

hansi

Mine was about £600 short too. In the light of recent events, that's not too bad.

M271

I today received my Scottish Amicable (now Prudential) Endowment Maturity letter, the HOME PURCHASER Endowment was taken out for £16000 25 years ago. The Final Policy value is £15446 which includes a £4491 Terminal Bonus, so a shortfall of £554. I hope that this information is of use to those of you in similar situations with Policys maturing soon.

For a laugh I dug out my original Mortgage Illustration from 1986 and that showed a Benefits, Reversionary Bonus and Possible additional Terminal Bonus total of £44000 !!! around half of this was the Terminal Bonus, however the mortgage rate at that time was 13.25% (gulp !)

bluefrew2

Don't give up on the "Further Bonus" and complain to the FSA. The Pru can say all they want about the further bonus being added to the Terminal Bonus but to do that would mean a change of the original agreement - contract and they would have to go to the Court of Session in Edinburgh to do that (I think). The Pru is getting away with hundreds of millions and we're are not doing anything about it!

COMPLAIN

trademark

But once again i have let time slip by as these policies are not due to expire for another 3 years

I have just had mine valued and they are picking up but i am not happy about this scottish amicable situation, everytime i call the head office they seem confused and baffled and one lady seemed close to tears as i politely pushed her for an answer to what she considered an over complicated question

Time has not been kind to us here, It would seem they have changed their promise of a final payment from the take over deal to a supposed payment into the fund some time ago.

They can not tell me the day it was added or the amount, or provide any documentation to back it up.

i am not happy as they are assuming i lack intelligence or memory

Today i have printed off this thread and posted it with a letter of complaint

The fsa will also be hearing about this, i suggest everyone here do the same

trademark

ready for a laugh !!!

As a 21 year old and sat next to my 18 year old wife in 1989 and whilst buying my 3 scottish amicable policies, My IFA told me that if my terminal bonus was not around the 120%-150% mark "he would eat his hat" .. he did sort of ,,, i sued him for mis-selling and got a terrible £4k

Although extremely difficult to get an idea out of india i finally was told that my intitial policy % bonus was 37% if it expired this year


on that note could i ask what % terminal bonus others here have had on their fully paid up and expired endowements and if they are aware of any increases of late

thanks

Froggitt

Have the Pru ever explained where the £530 million has gone if its not been paid out on maturity as further bonuses?

SteveStJulians

I took out two Scottish Amicable with profits endowment policies in the '80s (one in 1986 and one some time later). They were due to pay out a total of 100k exactly and mature this year (in May and July).

I just contacted The Pru and they tell me that the current policy surrender values (including terminal bonuses) are 69,300 and 18,300 (roughly) so a shortfall of almost 12500!!

Hate to think what their surrender values would have been if they were not 'with profits'!!

The Pru are scoundrels and they are getting away with mugging all of us.

Meeper

The return may have been significantly lower or significantly higher if they were not "with-profits" depending on the performance of the underlying investment.

A shortfall of only 12.5% from policies which were taken out in the 80's actually seems like one of the better stories, to be honest. Whilst £12,500 is a significant sum, there are much worse horror stories out there than this.

I'm afraid I have to ask.....why didn't you do anything about it before now? Surely you will have received warning letters from them, etc, over the years?

hansi

"The Pru are scoundrels and they are getting away with mugging all of us."


I don't think Mr Dunstonh will agree with you there!

Froggitt

An update on this would be useful......not sure where the figures come rom or Id update it myself.

2004 - 89% of endowments hit target (of those falling short, the average shortfall was £890)
2005 - 95% of endowments hit target (of those falling short, the average shortfall was just £49. The average surplus was £2409)
2006 - 96% hit target (average shortfall for those falling short was £700 and average surplus £2600).
2007 - 98% hit target (average shortfall for those falling short was £518 and average surplus was £3348).
2008 estimate - 98.2% expected to hit target with average suprlus of £2280 and those falling short, average shortfall will be £362