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Endownment - sell/keep?
Hi, wonder if anyone can offer any advise on an endownment policy with L & G, I cashed one last year and was able to pay off my mortgage but kept a small one going just as a savings plan and am now wondering whether to cash this in also. These are some of the details i have at hand:-
With profits
Basic sum assured ?2877.00
Death sum assured ?8850.00
Monthly payment ?12.89
Started 27/09/89
Maturity 27/09/13
Life cover not needed
Somewhere about ?500 paid to myself for misold policy
Surrender value today ?4,542.10
Any opinions or advise would be much appreciated as keep dithering as to what to do.
Can you supply maturity forecasts?
Sorry, had a look last night and can't find any so will give L & G a ring to see if they can post them to me.
Will also need the current terminal bonus accrued on the plan.
Hi i have just called L & G for the extra informtion required:- 4 % ?6,780 6 % ?7,670 8 % ?8,660 The terminal bonus is 91% for this year. Thanks once again.
Do you have a figure for the total guaranteed value (sum assured plus declared bonuses) or is this a unitised WP policy?
The only guaranteed value i can see on my policy statement is ?8,850 for the life cover, otherwise the only maturity forecasts are as posted above. I guess it must be a unitsed with profits policy.
4 % £6,780 6 % £7,670 8 % £8,660 If you cashed it in and deposited the surrender value in an account earning a net return of 5%, also paying in the premiums to maturity, you should end up with 7,176 which would be guaranteed. The L&G fund is thought likely to make 6%, so you might get a bit more if you held on to the policy.It's up to you whether you think that's a worthwhile return for taking the risk of getting less than you would in a savings account.You could of course get a potentially much better investment return if you moved it to a few decent unit trusts.
TB has to be added to projections.
4 % ?6,780 6 % ?7,670 8 % ?8,660 The surrender value contains accrued TB. Using that amount and adding in premiums at the same growth rates you get maturity values of 4% 6804 6% 7566 8% 8401 The slightly higher rates they quote probably reflect a small early surrender penalty.
The surrender value contains the accrued TB but the projections dont.
Many thanks for the advice given, much appreciated. I may just leave it alone as it will mature at about the same time as my son's 21st birthday and could go towards buying him something nice. Thanks once again for your time.
Can you supply maturity forecasts?
Sorry, had a look last night and can't find any so will give L & G a ring to see if they can post them to me.
Will also need the current terminal bonus accrued on the plan.
Hi i have just called L & G for the extra informtion required:- 4 % ?6,780 6 % ?7,670 8 % ?8,660 The terminal bonus is 91% for this year. Thanks once again.
Do you have a figure for the total guaranteed value (sum assured plus declared bonuses) or is this a unitised WP policy?
The only guaranteed value i can see on my policy statement is ?8,850 for the life cover, otherwise the only maturity forecasts are as posted above. I guess it must be a unitsed with profits policy.
4 % £6,780 6 % £7,670 8 % £8,660 If you cashed it in and deposited the surrender value in an account earning a net return of 5%, also paying in the premiums to maturity, you should end up with 7,176 which would be guaranteed. The L&G fund is thought likely to make 6%, so you might get a bit more if you held on to the policy.It's up to you whether you think that's a worthwhile return for taking the risk of getting less than you would in a savings account.You could of course get a potentially much better investment return if you moved it to a few decent unit trusts.
TB has to be added to projections.
4 % ?6,780 6 % ?7,670 8 % ?8,660 The surrender value contains accrued TB. Using that amount and adding in premiums at the same growth rates you get maturity values of 4% 6804 6% 7566 8% 8401 The slightly higher rates they quote probably reflect a small early surrender penalty.
The surrender value contains the accrued TB but the projections dont.
Many thanks for the advice given, much appreciated. I may just leave it alone as it will mature at about the same time as my son's 21st birthday and could go towards buying him something nice. Thanks once again for your time.