Allied Dunbar unit linked endowment

DrJon

I have a 25 year unit-linked endowment (originally with Hambro Life, changed to Allied Dunbar, now with Zurich) that is currently invested in the Zurich Managed AL Fund (3/4b). It is due to mature in December 2009 and originally had a projected value of £30,000. I currently have 974.16 units at a selling price of £24.286, which makes a current value of £23,658. I am paying £42.05 per month at the moment. I want to plan how to handle the policy for its final 16 months.

My first thought is to watch the fund price carefully and when it regains (hopefully!) some of its recently lost value, switch it to a less volatile fund until it matures.

Is this a sensible strategy? As this is unit-linked, there is no terminal bonus to come, so should I sell it now instead and re-invest the money elsewhere?

Dick_here

Now isn't a good time to sell, unless you really need the money of course.