please help -should i sell/cash in my endowment

i-luv-free-stuff

hi
i im in a dilema at the moment and need a bit of help.
i have an endowment that i think i want to sell but or cah in but m not sure which the best option is.
here are the details i have:
prudential
target £23650
proj shortfall at 4% £6405 - at 6% £1650 ?
sv £5170.59
monthly premium £47.10
start 4.3.1999 end 4.3.2024

i would realy appreciate any advice on what i should do and any companies you would recomend.

thanks

dunstonh

Prudential endowments are first rate and currently stand at a 100% success rate (even Scot Am endowments, which Pru now badge as theirs have exceeded 90% with 98.2% success rate projected for this year).

I wouldnt taken much notice of the shortfall projections as they make a number of assumptions. One in particular is that the 4, 6 & 8% is before charges whereas Pru have been getting around 8% after charges.

Your choice is really keep it or sell it. Surrender would be a waste of money.

i-luv-free-stuff

ok thanks dunstonh
if i was to sell (as i am thinking off paying off some of our mortgage) do you have recomendations on where to go?

i-luv-free-stuff

as in where to go i meant companies that are reputable as loads come up on google!

EdInvestor

You can get sale quotes here by filling in just one form: https://www.apmm.org


What interest rate are you paying on your mortgage?

i-luv-free-stuff

EdInvestor wrote: »

You can get sale quotes here by filling in just one form: www.apmm.org


What interest rate are you paying on your mortgage?

hi
i am paying 5.09% until march 2010 but we are looking to move very soon so i thought if i pay it off this mortgage i wouldnt have to take out as much on the next mortgage , if that makes any sense.

i will check that apmm site out tomorow - cheers

schoolfundraiser

Don't forget that Endowments are also insurance policies which pay out on the death of the principal or principals.

If it is a joint endowment it will pay out IN FULL on the death of the partner. Which could mean that the mortgage is paid off at a stroke and without coming into the inheritance tax equations.

Now I'm not advocating shoving your other half under a bus but my husband died at 52 and his death in service pension to me and daughter was worth less than half of what he signed up for when he first started paying in 14 years before due to changes in rules etc. (Had I realised this would change so drastically at the time we would have taken out massive insurance on us both while we were both young enough for it to be cheap.) As it was we manage due to having no mortgage but our income is still under the poverty line.

Should the worst happen (and believe me it can and does) you could be grateful that the mortgage will be paid off. If you are under pension age you only get Widows Benefit for a year nowadays and the Widowed Parents Allowance is dependent on having school age kids at home with you. Do you think you could manage to pay the mortgage on your salary? Selling the family house and downgrading is not what you want to deal with just after losing your partner.

i-luv-free-stuff

hi
thanks for that. although we do have life insurance seperate to the endowment.

i-luv-free-stuff

and i think i am covered through my union

dunstonh

i-luv-free-stuff wrote: »

and i think i am covered through my union

That would be very unusual. Life assurance is usually provided by the employer through Death In Service (often linked to the membership of the occupational pension). However, most unions do not provide things like life assurance.

MikeFishcake

EdInvestor wrote: »

You can get sale quotes here by filling in just one form: www.apmm.org

This is something I'm looking to do as well. I'm assuming that APMM are a trustworthy organisation then?

I was unsure whether companies actually bought endowment policies any more, but if it's more likely to get a better amount from it than surrendering it, I'll definitely go for that.

I still might get my figures though and run it by you experts