GE Endowment Policy - Maturing June 2015

[dgeralds]

Hi All

Bought an Endowment policy with GE in 1988. I paid $706.70 annually. The policy will mature next month June 2016. The projected maturity amount quoted (guaranteed & non guaranteed) in 1988 was $59,xxx.

Last month I received a mailer my that policy will mature soon (with projected amount $39,151.93...yes still projected as at last month) and asking me to invest.

My question is:
1. Why a big difference between initial $59,000 and now $39,151.93?
2. At $39,151.93 how to calculate my returns / actual yield?

Thank you

 

[agenda]

$706.90 per year for 28 years represents a total of $19,732. Your total returns in 28 years is 1 minus projected returns divided by total investment which gives you 98%. Thereby making your simple average returns to stand at 3.5%.

Not very sure why you didn't get the "promised" amount of 59k but its probably due to fund performance or after paying for fund fees etc and so on.

 

[Mecisteus]

overall, your policy still yielding >4% pa. you are fortunate that you did not pick a lemon policy.