Prudential Endowment Payment

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mvteng
mvteng Posts: 514 Forumite
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in Mortgages & endowments
As my endowment got closer to maturity, I was always interested to read about actual payouts. So, in case anyone is interested, ours is as follows :

Prudential 25 Year Mortgage
Monthly payment : £120.90

Maturity Value Total : £63581,82
Fund Total : £37,382.01
Final Bonus : £26,199.81

Started out as a Scottish Amicable Homebuilder then switched to Prudential

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  • TrickyDicky101
    TrickyDicky101 Posts: 3,513 Forumite
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    Not including the life insurance component, I make that an effective annualised rate of return of 4.21% so not bad. Was the payout required to pay off the mortgage or had you already cleared that?
  • mvteng
    mvteng Posts: 514 Forumite
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    TrickyDicky101 wrote: »
    Was the payout required to pay off the mortgage or had you already cleared that?

    It clears the mortgage. Target amount was £47000 so the total was a nice surprise
  • Spendless
    Spendless Posts: 24,151 Forumite
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    Mine matures today. :j Also originally taken out as Scottish Amicable.

    Monthly payment £39.90

    Was to clear a mortgage of £23800.

    Letter suggests just over £20K

    Not needed to clear a mortgage, house was sold years ago. Current house on a repayment. Money will be going towards funding kids higher education living costs.
  • arnoldy
    arnoldy Posts: 505 Forumite
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    TrickyDicky101 wrote: »
    Not including the life insurance component, I make that an effective annualised rate of return of 4.21% so not bad. Was the payout required to pay off the mortgage or had you already cleared that?



    The compound annual return of the FTSE 100 the last 25 years was 6.4% with dividends reinvested. So not a disaster but not brilliant either.
  • Spendless
    Spendless Posts: 24,151 Forumite
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    Cheque came through the post today after maturing Thursday last week, so on the 4th working day after maturity. Was around £50 more than my letter suggested.

    Putting the info here as how long it took from maturity to receiving and how accurate the last letters were as to final amount were things I wanted to have an indication of in the final few weeks of the policy.
  • Old_Lifer
    Old_Lifer Posts: 780 Forumite
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    Strickly speaking, you are entitled to be in possession of cleared funds in your account on the day of maturity. A cheque until it clears is really only a piece of paper. A policy schedule will state (for example) 'Date of maturity 1st December 2019' , it will not state 'Date of maturity 1st December 2019 but we will pay you your money a week later'.


    It was for this reason that Life Offices traditionally issued maturity cheques one week before the maturity date. This continued long after I left my job with a Life Office. I have had a large number of endowments with a range of companies and noticed in the 1990's that cheques were being issued on the actual maturity date.


    With unit-linked policies a short delay may occur, as the value of the units on the date of maturity needs to be established before payment is made.


    As we are now entering an age of rapid clearing of cheques and of electronic same day payments, I cannot see why the proceeds from a 'with- profits' policy cannot be available in the policyholder's account on the maturity date.


    With the marvels of computing, perhaps it would be possible to calculate the unit-price on the maturity date and make an instant electronic payment but then, I know nothing of new technology.
  • Max105
    Max105 Posts: 3 Newbie
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    I am also just coming up to maturity with a similar policy (also started out as "Scottish Amicable Homebuilder"), but on the letter sent to me by Prudential, it says:
    "Your plan may give you further options at the maturity date. I strongly suggest that you contact your financial adviser to discuss these options particularly if you are a higher rate tax payer".

    Does anyone here have experience of what this might be alluding to, as it says, for higher rate tax payers? I thought once this type of policy came up for maturity the only real option was to receive a lump sum, originally designed to pay off a mortgage. As far as I know this is a "bog-standard" mortgage endowment (unit-linked?) policy.
  • samraj
    samraj Posts: 22 Forumite
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    A bit frustrating that nobody at Pru being able to help me immediately as my Account is apparently taken off-line as it's maturing in March or get a silly reply that there is nothing on your account?! Do you get a letter from Pru or the maturity amount is deposited in your account?
  • mvteng
    mvteng Posts: 514 Forumite
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    I got told a letter from Pru telling me that they would send a letter with the maturity value.  It never arrived.
    I phoned Pru and they read the letter out to me, but told me that if I wanted a copy of the letter, it would take 28 days to resend, and they couldnt just email me a copy of the letter.
     I was told a cheque would be posted to me, but the funds arrived directly in my bank account.
    All a bit of a shambles I think
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