Endowments stick, sell or make paid up?

Allimann

Oh I see! Looks like I'll have to call him again. Well, as far as I can tell NU quoted me as if it was our policies maturing this year. That's assuming I'm asking the right questions. How does one know if we have good or bad NU policies? BTW what is a mortage promise value? Also what about the Pru? Are they a 'dump'?

dunstonh

How does one know if we have good or bad NU policies

By analysing the data available. Its not hard to make a judgement call once you look at all the data.

BTW what is a mortage promise value?

In 2001 (and altered to cap the value in 2004) NU set a promise value that would pay out if the endowment fell short. It was based on your middle band shortfall figure in 2001.

Also what about the Pru? Are they a 'dump'?

Pru have a 98.2% success rate currently on their endowment maturities. Even in the worst years it only dropped to 94%. They are one of the best providers.

Allimann

Thanks re Pru, that's comforting and I cannot make this policy paid up anyway. Any idea what the NU success rate is? Also please would you list the data you think I need collate to help me make a judgement on my two NU endowments.

Trillionaire

Hi. I'm no expert but I also have a NU endowment. If you google Norwich Union and 'surplus' you will see that there is something going on about some billion dollar surplus that they have. There is also some talk about making extra bonus payments to policy holders if the policy does not mature within 3 years; plus some other payment may be made if we give up our right to other accrued surpluses in the future.

Sorry I'm not too clear but please just check it out before getting rid off your NU policies.

EdInvestor

You need to update the maturity projections (which include the terminal bonus) as the markets have been very volatile this year..

The extra bonuses only apply to policies which were formerly CU, GA or CGNU policies.

Allimann

Getting this sorted. apparently if made paid up the guaranteed amount payable sums are £31.185.55 and £9,961.00. But these are both less than the current surrender value! Can anyone shed light on why is that should be the case?

Allimann

Anyone??

BTW Am still awaiting new maturity projections.

StefanRH

In 2000/1 I got surrender values for 2 endowments- approx £16,000
Brokers offered approx £24,000 but agreed with terminal bonuses(sky high at the time) on maturity-April 2006- I'd get over £40,000 so I held on to them.
The FTSE dived, funds crumbled and with them terminal bonuses and in 2006 I received £24,300 effectively losing 5 years interest, it could have been the other way round but no-one has a crystal ball