A tale of two endowments

A tale of two endowments

Here's a tale of two endowments. In March 1980, 29-year-old Steve started paying £50 a month into a 25-year Legal & General endowment policy.

It's finally maturing on Tuesday and this week he learned he can expect a payout of £48,757.

At the exact same time that Steve took out his policy, 29-year-old John also started paying £50 a month into a 25-year endowment. John took out his policy with Liverpool Victoria friendly society.

His endowment is also maturing on Tuesday and this week he found out his payout is likely to be £74,300 - 52% more than Steve is getting.

These figures emerged on Thursday when both L&G and Liverpool Victoria announced the bonuses and payouts their with-profits policyholders - each has about 1 million.

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There is doubtless an explanation for these very differing figures but it's hard to argue with Liverpool Victoria's claim that its customers are better off being with a mutual that can use all investment returns to benefit members, "unlike plcs that have shareholder dividends to pay".

Guardian Unlimited © Guardian Newspapers Limited 2005