We have a 25 year endowment policy with Eagle Star, originally taken out in
1992, and made fully paid up in 2001 when we saw how much they thought we should increase our monthly 'investment'(!!) to be sure of clearing our mortgage on 2017. Altogether we paid in 5361.12 before we saw the light and made the policy fully paid up and changed our OneAccount mortgage loan from an interest only to a repayment loan.The bonus statement for 2003 has just arrived on the doormat and has earned
15.27 bonus for the whole of 2003. The other figures are as follows:- Basic benefit 3,386.00 Existing bonus 2718.38 New Bonus 15.27 Accumulated benefit 6119.65I have asked for an estimated benefits at maturity quotation, which we should receive in the next 14 days, and as of close of business yesterday, the cash in value was 3447.01, so question is should we take the money and pay it into our OneAccount to reduce the balance now, or leave it as fully paid up, given that the literature accompanying the bonus statement states that that the return they giving at the moment exceeds that achieved by the fund's assets, hence the reducing bonus rate and also states (more than once) that "a terminal bonus MAY apply to claims on death or maturity but this bonus can change or be removed without notice"
Any points of view would be welcomed!
Thanks
Lyn