Endowment policy.

[clever trev]

Does it go without saying that endowment policies will suffer even more with the credit crunch.

[factor-fiction]

They will suffer because returns are linked to share prices (which have plumetted over the last year and gilts for whichinterest rates which have fallen also.

[Krypton27]

This is not wholly correct. The yield on Gilts has fallen because the 'buying' price of gilts has risen. Therefore, holders of ordinary gilts will be have seen the capital value of their holdings rise. As insurers hold large percentage of their with profits funds in gilts this will offset the fall in the value of their equity holdings.
Endowments with maturities in 5 + years - impossible to predict markets that far ahead.

[clever trev]

Thank you both for your answers, mine has got 6 years left to run. of 25 so think i will hang on in there, and still carry on putting some away to cover any short falls

[Kathyan]

We have an endowment policy and have just converted our mortgage to all repayment instead of part repayment and part interest only. It hasn't changed the payments much and when the endowment policy matures the money is ours! We will probably pay off part of the mortgage with it anyway, but we don't have the worry now of it not covering what we would owe against it.