endowment advice sought part 2

redscouse

hi there I received some excellent advice a number of weeks ago regarding my own endowment policy and my father has asked me to ask again on his behalf ...so here goes

he has a Legal and general with profits policy
start date :22/04/1993
maturity date: 22/04/2013
target amount $27000

premium :$80.07/month………..can’t get pound sign to work on keyboard can you assume dollar sign is a pound sign please….

Basic sum assured $12744
Life cover $27000
Existing bonuses $ 4128

This info comes from 2006 with profits bonus statement, released in july 2007
Which says generated a return during 2006 of 12% before taxes and charges which contrasts sharply with the update plan below

the update plan dated January 2008 suggests growth of 6% indicating a shortfall of $6500. on $27000

4% projected final amount $18600
shortfall of $8400

6% projected final amount $20500
shortfall $6500

8% projected final amount $22700
shortfall $4300

target amount $27000

the rate of growth needed to reach the target amount is higher than the maximum rate used for illustrating future returns.

Would my father get a better return from cashing in this policy and investing in ISA’s and what not….this endowment was set up initially to pay off mortgage but this has now been paid off.

Thank you for reading this.

redscouse

I shall bump this the once....sorry