From: "Trevor" 
Newsgroups: uk.finance
Subject: Re: Endowment policy bonuses
Date: Fri, 21 Jul 2006 04:23:53 +0100


"Alan Frame"  wrote in message 
news:1hisuzt.1wvxxefpkojamN%alan.frame@acm.org...
> tim  wrote:
>
>> "Trevor"  wrote in message
>> news:44bf5e8a$0$3502$ed2619ec@ptn-nntp-reader01.plus.net...
>> >I find endowment policies totally bewildering. If a policy pays 2.5% 
>> >bonus.
>> >Can this be compared with the 5% you can get in a Cash ISA?
>>
>> You will get an annual guareteed bonus which cannot
>> be taken away and a terminal bonus at the end.  Historically,
>> the terminal bonus on a 25 year policy is approaching 100%
>> so that's an extra 4%. Whether this is likely in the future
>> is another matter, but even if it's lower than this, you can't
>> compare the two
>
> True, but it's entirely possible that one can get an annual bonus - say
> to Nov 2005 of 0.5% - and if you don't like it and want to escape
> Norwich Union, then they'll hit you with a 33.43% MVA...
>
> (Not an endowment mortgage, a WP penson policy from 1993, maturity 2032)
>
> If the OP is considering a WP endowment, then they should immediately
> complete an EPA before they are sectioned.
>
> HTH, Alan
> -- 
> 99 Ducati 748BP, 95 Ducati 600SS, 81 Guzzi Monza, 74 MV Agusta 350
> "Ride to Work, Work to Ride" SI# 7.067 DoD#1930 PGP Key 0xBDED56C5


Can you explain:

'complete an EPA before they are sectioned'