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Yet another endowment question.........
bauble49
Posts: 12 Forumite
While looking through the original paperwork from when I took out my endowment policy in November 1988 for £45000, there is a sheet called 'product particulars' and next to 'guaranteed sum assured' is the figure of £45000.
Now over the years and like most people, I have been told that my final figure will be well below the sum needed to pay off my mortgage, maybe £20000 short, however if I have an official document that states that the guaranteed sum is £45000, surely that must be the minimum figure I can expect to receive.
Please tell me this is true !!!
Now over the years and like most people, I have been told that my final figure will be well below the sum needed to pay off my mortgage, maybe £20000 short, however if I have an official document that states that the guaranteed sum is £45000, surely that must be the minimum figure I can expect to receive.
Please tell me this is true !!!
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Comments
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Having a guaranteed sum assured is correct. The life assurance element is £45,000.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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....aaaahh, so that means that if I die they pay out £45000 and that's what they guarantee, not that the minimum figure at maturity to pay off my mortgage is £45000...........
Is this correct, if so 'darn it' !!!!!0 -
....aaaahh, so that means that if I die they pay out £45000 and that's what they guarantee, not that the minimum figure at maturity to pay off my mortgage is £45000...........
Is this correct, if so 'darn it' !!!!!
You got it in one - the benefit if you die is guaranteed, nothing else.If many little people, in many little places, do many little things,
they can change the face of the world.
- African proverb -0 -
........thanks dunstonh and MF, now that you've explained it seems so obvious really, just me wishful thinking I suppose !!
Thanks again.0 -
If its an old style with profits policy (not a unit linked policy) you might find reference to a lower figure, the "Basic Sum Assured" which is the guaranteed minimum amount the policy would pay out on maturity. Bonuses are also calculated as a percentage of the basic sum assured. The basic sum assured is set at a much lower level than the guaranteed death sum assured (often around a third).0
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