Endowment policy bonuses

You will get an annual guareteed bonus which cannot be taken away and a terminal bonus at the end. Historically, the terminal bonus on a 25 year policy is approaching 100% so that's an extra 4%. Whether this is likely in the future is another matter, but even if it's lower than this, you can't compare the two

tim

In message , tim writes

The annual bonus is expressed as a percentage of the sum assured, not a 'fund value'. Sometimes there are two bonus rates, one on the sum assured and a different rate for the bonuses on bonuses. So the answer to the OP is that you can not compare bonus rates with interest rates. terminal bonunsses are usually expressed as a percentage of the summ assured plus all bonuses awarded to date. Of course all of these bonuses are [aid at maturity althugh some companies pay some 'terminal' on surrender.

Apart from the incomparability of bonus and interest rates, even if they were comparabile it would be silly to do so, because with profits are long term investments with good times and bad times and cash accounts just pay interest and er, thats it.

True, but it's entirely possible that one can get an annual bonus - say to Nov 2005 of 0.5% - and if you don't like it and want to escape Norwich Union, then they'll hit you with a 33.43% MVA...

(Not an endowment mortgage, a WP penson policy from 1993, maturity 2032)

If the OP is considering a WP endowment, then they should immediately complete an EPA before they are sectioned.

HTH, Alan

Can you explain:

'complete an EPA before they are sectioned'

Long-winded way of saying that IMO you'd be mad to consider a WP endowment.

rgds, Alan

All I'm considering is how to work out how whether to hold on or sell.

In message , Trevor writes