Endowment % return - can someone calculate this?

I make it:

Policy 1: 228 payments of £31.41 worth 404.8 payments: 5.74% Policy 2: 208 payments of £9.87 worth 300.2 payments: 4.11%

You'll also lose 8 years' of interest on the £9000 no longer in savings.

Probably not worth it unless you can buy extra qualifying years.

Besides, Reverend, retiring early from the Ministry is Just Not Done.

Correction: You'll lose that interest forever, not just for 8 years.

The returns are some 5.52% and 3.96% pa compound respectively.

Be careful before surrendering. You need to look at the quality of the company, and if they are "with profits" policies, the sum assured and the bonus that has already been added. This is the minimum that will be paid out. Furture bonuses and possibly a final bonus will also add to the value of the policy.

If you finally decide to "get shot of" the policies, you may get a better deal by selling them, rather than surrendering.

Hope this helps

Peter Taylor

"Peter Taylor" wrote

What *assumptions* did you use to get those figures??

Eg: Schedule of premiums; Cost of life cover; etc

The usual ones, presumably, that the premiums are paid monthly, are all the same, and that the cost of life cover is disregarded as are the effects of charges and commission, because life cover may have been unwanted and you simply get it whether you want it or not, because "That's what we sell, guv. If you want a pure investment, try a stockbroker."

What's more worrying, though, is that his answers differ from mine. We can't both be right, so either we must have made different assumptions, or one of us (not naming names) must have made a mistake.

In message , Peter Taylor writes

The s/v will already include any accrued terminal bonus. Next year, the terminal bonus could be less so the s/v will be less.

The market is pretty empty at the moment!

"john boyle" wrote

Some companies might only include *part* of their scale terminal bonus in a surrender value. So some element of TB *will* still "add to the value"...

In message , Tim writes

But ONLY if the same level of TB is maintained, which has not been the case over recent years with total maturity pay outs being less than the previously offered surrender values on the same policy.