From: "Peter Taylor" 
Newsgroups: uk.finance
Subject: Re: Endowment % return - can someone calculate this?
Date: Mon, 26 Apr 2004 09:27:38 +0000 (UTC)

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


"Rev Nicholas Cleeveley"  wrote in message
news:FPuic.197$0A.2070531@news-text.cableinet.net...
> Policy 1:
>
> Commenced May 1985
> Total premiums paid as of today £7,161.00
> Surrender value as of today £12,714.60
> Death benefit £20,425
>
> Policy 2:
>
> Commenced January 1987
> Total premiums paid as of today £2,052.00
> Surrender value as of today £2,963.60
> Death benefit £6,075
>
> Can anyone give me an estimate of what % return I've averaged over the
life
> of the policies so far?
>
> FWIW I'm going to get shot of these policies and use £9,000 from savings
to
> clear the mortgage (we paid £2,000 off of it about twelve years ago).
Over
> the next 8 years, I reckon I'll save £12,500 in premiums and mortgage
> interest payments *and* won't have any worries about the policies not
paying
> off the mortgage.
>
> And with the £170 per month I'll be better off, I'm thinking of jacking up
> the AVC's I pay into my works pension so I can retire earlier.
>
> Any comments welcome.
>
>