anyone know how endowment compensation is calculated ?

Apr 01, 2006 1 Replies

anyone know how endowment compaensation is calculated



i understand the basic formula of :



net gain of repayment mort - net gain of the endowment mort = compensation



but since an endowment mort pays interest only (no additional capital payment), the balance stays the same which ever way you work it out



short of crediting you with capital payments you didn't make - i cant figure out how they will work it



any clues?


You have been making capital payments - into the endowment policy.

An estimate of the value of the endowment policy will be taken away from the outstanding loan

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