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  • FIRST POST
    • cloudy913
    • By cloudy913 13th Apr 18, 3:04 PM
    • 4Posts
    • 0Thanks
    cloudy913
    Royal London Endowment Query
    • #1
    • 13th Apr 18, 3:04 PM
    Royal London Endowment Query 13th Apr 18 at 3:04 PM
    I have just received my annual bonus statement for my 25 yr Endowment policy which has approx. 2 years to run before maturing . The policy was set up to give a target payment of 40, 000 . The statement gave a total guaranteed value which is approx. 12,500 short of that which is of no real surprise .
    My query though is that I also received another "green letter " correspondence from Royal London about the same policy telling me that the policy is on track to meet or exceed the target amount of 40,000 . I am confused as I cant see the policy making another 10k profit on top of my monthly payments when its barely made 8k in the past 23 yrs .
    Am I missing something ?
Page 1
    • TrickyDicky101
    • By TrickyDicky101 13th Apr 18, 5:45 PM
    • 3,128 Posts
    • 2,067 Thanks
    TrickyDicky101
    • #2
    • 13th Apr 18, 5:45 PM
    • #2
    • 13th Apr 18, 5:45 PM
    Presumably the terminal bonus will make up the difference between the two numbers - the basic sum assured and any reversionary (annual) bonuses awarded will make up the guaranteed portion and then a final terminal bonus (non-guaranteed and largely dependent on stock market position at the time the policy matures) is what is 'on track' to meet target.

    This assumes you have a traditional With Profits endowment or a Unitised With Profit plan (but not a Unit Linked plan).
    • dcfc67
    • By dcfc67 13th Apr 18, 5:49 PM
    • 49 Posts
    • 34 Thanks
    dcfc67
    • #3
    • 13th Apr 18, 5:49 PM
    • #3
    • 13th Apr 18, 5:49 PM
    They add a terminal bonus which is a percentage of the sum assured. This could add 60-70% to you figure.
    • cloudy913
    • By cloudy913 16th Apr 18, 12:31 PM
    • 4 Posts
    • 0 Thanks
    cloudy913
    • #4
    • 16th Apr 18, 12:31 PM
    • #4
    • 16th Apr 18, 12:31 PM
    Many thanks for the replies . Neither of the letters mentioned a termination bonus so that would probably be the reason why . It is a with profits plan .
    • dcfc67
    • By dcfc67 16th Apr 18, 3:22 PM
    • 49 Posts
    • 34 Thanks
    dcfc67
    • #5
    • 16th Apr 18, 3:22 PM
    • #5
    • 16th Apr 18, 3:22 PM
    Give them a call, i believe that last year (2017) terminal bonus was 70%, previous 2 years was around 62% of sum assured.
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