Fear of Finance

There are two ways of choosing which endowment policy, single- premium bond or pension plan will suit you best. Past performance is a guide only to the past and by definition it is always too late for the new investor, while projections based on the expected level of charges provide only one of the two factors that determine actual future performance. They tell you nothing about future performance, which is arguably the more important of the two.

Using the past actual and projected future performances has allowed the magazine Money Marketing to produce the best assessment yet of winners and losers among the main providers of insurance-based investment products.

The latest review published today is still not a simple document. The best performers over five, 10, 15 and 25 years are not always consistently the same, and those which have the best values when held to maturity are not always the same as those with the best surrender or transfer values at intermediate stages in their life, something which assumes relative importance when you remember how relatively few policies are held from start to finish.

Out of 54 companies only 37 returned entries. Nine companies - CIS, Friends Provident, General Accident, Royal London, RNPFN, Scottish Widows, Standard Life, Sun Life of Canada and Wesleyan - produced average or better past performances over the whole range. The best overall ratings on endowment policies over the last 10 years came from Swiss Life, which turned a monthly premium of pounds 35 from a 30-year-old non-smoking male into pounds 8,351, followed by Royal London, RNPFN, Scottish Mutual and the Tunbridge Wells, and the least successful has been Eagle Star, which was worth only pounds 5,966 or 71 per cent of the best performer, with Britannia Life and Royal Insurance not much better. After nine years Sun Life of Canada had the highest surrender value.

Over 25 years RNPFN had turned pounds 20 a month from a similar male into pounds 45,789, ahead of Royal Insurance, Wesleyan, General Accident and Commercial Union, with Colonial in last place with pounds 30,260. There is good news among the findings, however, because the recent trend of falling endowment policy pay-outs seems to have been reversed over the longer term, especially when terminal bonuses are taken into account.

For future projections after deducting charges, Equitable Life is expected to work out cheapest over 10 years followed by Legal & General and Britannia Life, with NFU Mutual the worst performer, while over 25 years Equitable Life heads RNFN and Axa, with Royal Insurance and Scottish Life at the bottom of the pack.

On the pension front General Accident turned pounds 30 a month for a 50-year- old into pounds 31,565 after 15 years, and heads Axa, Scottish Widows, Equitable Life and Norwich Union, while the cheapest future provider will be Medical Sickness, turning a monthly premium of pounds 100 for a 30-year-old male into a fund of pounds 247,000 after 35 years, assuming a steady 9 per cent compound growth before charges and inflation of 4.5 per cent.

Equitable Life is in second place, followed by Scottish Equitable, RNPFN and Clerical Medical, while the Prudential could only manage pounds 183,000 just ahead of Axa Equity & Law.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Life and Style
ebookNow available in paperback
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Arts and Entertainment
Joel Edgerton, John Turturro and Christian Bale in Exodus: Gods and Kings
film Ridley Scott reveals truth behind casting decisions of Exodus
News
Andy Murray with his girlfriend of nine years, Kim Sears who he has got engaged to
peopleWimbledon champion announces engagement to girlfriend Kim Sears
Arts and Entertainment
Jake Quickenden and Edwina Currie are joining the I'm A Celebrity...Get Me Out Of Here! camp
tv
Arts and Entertainment
Roisin, James and Sanjay in the boardroom
tvReview: This week's failing project manager had to go
Life and Style
Fright night: the board game dates back to at least 1890
life
Life and Style
fashion
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs General

    Argyll Scott International: Senior Business Analyst- Insurance

    Negotiable: Argyll Scott International: Senior Business Analyst - Insurance ...

    Recruitment Genius: Property Manager

    £25000 - £29000 per annum: Recruitment Genius: This independent, growing Sales...

    Recruitment Genius: Graphic Designer

    £16000 - £20000 per annum: Recruitment Genius: Multi-skilled graphic designer ...

    Austen Lloyd: Court of Protection Solicitor

    £30000 - £50000 per annum + EXCELLENT: Austen Lloyd: Court of Protection Solic...

    Day In a Page

    Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

    Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

    It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
    Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

    Sol Campbell cries foul at Labour's mansion tax

    The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
    Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

    Sarkozy returns

    The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
    Is the criticism of Ed Miliband a coded form of anti-Semitism?

    Is the criticism of Miliband anti-Semitic?

    Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
    Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

    Ouija boards are the must-have festive gift

    Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
    UK firm Biscuiteers is giving cookies a makeover - from advent calendars to doll's houses

    UK firm Biscuiteers is giving cookies a makeover

    It worked with cupcakes, doughnuts and macarons so no wonder someone decided to revamp the humble biscuit
    Can SkySaga capture the Minecraft magic?

    Can SkySaga capture the Minecraft magic?

    It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
    The King's School is way ahead of the pack when it comes to using the latest classroom technology

    Staying connected: The King's School

    The school in Cambridgeshire is ahead of the pack when it comes to using the latest classroom technology. Richard Garner discovers how teachers and pupils stay connected
    Christmas 2014: 23 best women's perfumes

    Festively fragrant: the best women's perfumes

    Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
    Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

    Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

    Our partner charities help veterans on the brink – and get them back on their feet
    Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

    Putin’s far-right ambition

    Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
    Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

    Escape to Moominland

    What was the inspiration for Finland's most famous family?
    Nightclubbing with Richard Young: The story behind his latest book of celebrity photographs

    24-Hour party person

    Photographer Richard Young has been snapping celebrities at play for 40 years. As his latest book is released, he reveals that it wasn’t all fun and games
    Michelle Obama's school dinners: America’s children have a message for the First Lady

    A taste for rebellion

    US children have started an online protest against Michelle Obama’s drive for healthy school meals by posting photos of their lunches
    Colouring books for adults: How the French are going crazy for Crayolas

    Colouring books for adults

    How the French are going crazy for Crayolas