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Endowment query

I'm a bit lost with what to do about my mortgage endowment policies. I have two policies both of which have serious shortfall problems and very low annual bonus rates. I have succesfully complained about mis-selling of both policies and was paid a few thousand pounds in compensation: I used this sum to reduce mortgage capital. The policies will (I think!) each deliver a terminal bonus, but I haven't a clue how this is calculated, so I can't decide if it's worth keeping the policies going (note that I can now afford to clear the outstanding capital without need of the endowment payouts).

Does anyone know how I would go about estimating each policy's terminal bonus? Or indeed what factors I need to consider in weighing-up my current contributions (~£50/month) versus continuing with, selling, or making paid-up the policies?

Can I calculate this stuff myself, or should I speak to a financial advisor?

Thanks AM

Reply to
Toobs
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ask the actual insurance co for a projection (likely value at maturity), and how terminal bonuses are calculated.

Does anyone know how I would go about estimating each policy's terminal bonus? Or indeed what factors I need to consider in weighing-up my current contributions (~50/month) versus continuing with, selling, or making paid-up the policies?

Can I calculate this stuff myself, or should I speak to a financial advisor?

Thanks AM

Reply to
Bedders

Projections won't actually get you anywhere because they have to be done according to FSA prescribed growth rates and what if you're stuck in a company that is unlikely to pay any decent bonuses again? You need to find which company it is, discover how much of the fund is invested in equities, how much is likely to be invested in equities in the future - i.e are there likely to be any changes in this respect - then make a deduction as to whether they will be able to pay decent bonuses in the future. If the proportion of equities is low and likely to remain low then there is not much chance of worthwhile bonuses. If you're with Prudential, Legal & General, Standard Life or Norwich Union then you're probably OK. If not, then you're probably not.

If this is beyond you, consult an IFA. But don't forget the goblins that jump up and say 'never trust an IFA. They just go for the biggest bung'. No bungs here, I reckon.

Rob Graham

Reply to
Rob graham

As part of our standard calculations we take into account terminal bonuses so if you would like to provide details of your policies on our website

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we will do the sums. When doing so please refer to this news posting.

DWW

Does anyone know how I would go about estimating each policy's terminal bonus? Or indeed what factors I need to consider in weighing-up my current contributions (~50/month) versus continuing with, selling, or making paid-up the policies?

Can I calculate this stuff myself, or should I speak to a financial advisor?

Thanks AM

Reply to
Derek Way

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