Endowment Maturation Value Shock
Discussion
I took out an endowment many years ago with the Prudential. I'd completely forgot about it as the loan it was supposed to cover was redeemed within about 3 years of taking the policy out. Anyhow I've just received a letter from the Pru telling me it matures in September & considering all the bad press these things have had it will be redeemed for £37.45 over the original target value. Well chuffed, thats a nice little present coming next month!
GT03ROB said:
I took out an endowment many years ago with the Prudential. I'd completely forgot about it as the loan it was supposed to cover was redeemed within about 3 years of taking the policy out. Anyhow I've just received a letter from the Pru telling me it matures in September & considering all the bad press these things have had it will be redeemed for £37.45 over the original target value. Well chuffed, thats a nice little present coming next month!
Thats good news. Mine is currently running at 45% of its original planned redemption value and will not cover what I have put in. Not too chuffed, there are lots of bad news stories around endowments. Anyway please for you.A lot of the problem with endowment policies was down to the silly projected growth rates that were used when they were originally sold. If you were relying on the projected growth to pay off a mortgage and the actual growth was a lot less then that was where all the problems occurred. I expect your endowment was a 'With Profits' policy which the Pru have always been very good at. As a savings plan, once there is no loan reliant on it, it was probably ok. If it had been a 'Unit Linked' policy you probably wouldn't be quite so impressed.
When I first joined an Insurance Company back in the early eighties their quotation system actually let you enter any projected growth rate you fancied so if the investment returns at the time were 18% that's what you could put in. We never put that high a figure in but I suspect the figure we did put in, although reasonable at the time, would look very optimistic now.
When I first joined an Insurance Company back in the early eighties their quotation system actually let you enter any projected growth rate you fancied so if the investment returns at the time were 18% that's what you could put in. We never put that high a figure in but I suspect the figure we did put in, although reasonable at the time, would look very optimistic now.
stevejh said:
I expect your endowment was a 'With Profits' policy which the Pru have always been very good at. As a savings plan, once there is no loan reliant on it, it was probably ok. If it had been a 'Unit Linked' policy you probably wouldn't be quite so impressed.
Yes, it was a "with profits".Gassing Station | Finance | Top of Page | What's New | My Stuff