VERSATILE ENDOWMENT PLAN

redgewd

I've recently received notification that one of my Endownment Savings Plans has matured. I've paid in £20 per month for 10 years (Total £2400) and have just been told that the plan will pay only £2100. So basically they have charged me £300 to look after my money for 10 years.

My dilema is I have 3 other policies with Scottish widows paying in total £100 per month. Is it best for me to cut my losses and surrender them knowing I can then put the money into my mortgage offset account or should I wait it out and hope I don't lose even more than the £300 on the next 3. They mature over the next 5 years.

The policies are 20 year ones with an option after 10. Scottish widows are obviuolsy trying to persuade me to hold onto them for another 10 years, but I'm concerned I will lose even more money. At the moment Id be happy to just get my money back at the end, but this looks unlikely. Has anyone had a similar problem or could you advise. Thanks

dunstonh

My dilema is I have 3 other policies with Scottish widows paying in total £100 per month. Is it best for me to cut my losses and surrender them knowing I can then put the money into my mortgage offset account or should I wait it out and hope I don't lose even more than the £300 on the next 3. They mature over the next 5 years.

1 - it depends on the funds you are invested in
2 - it depends on the ongoing charges until maturity
3 - it depends on the surrender penalty
4 - paid up may be an option but again, depends on funds and charges.

Scottish widows are obviuolsy trying to persuade me to hold onto them for another 10 years,

Quite correct too.   Company employees are not allowed to recommend cancellation of plans.  Had they told you to surrender, they would have been in breach of the rules. Tied advisors also have limited scope to deal with cancellation too.

but I'm concerned I will lose even more money. At the moment Id be happy to just get my money back at the end, but this looks unlikely. Has anyone had a similar problem or could you advise. Thanks

More information is needed as shown at the top.