Worth Keeping Endowment

stevecarro

Hi
This is my first posting

I have a with profits endowment from Clerical Medical which matures Feb 2013

Basic Sum assured £7204
Total Bonus £5765
Life Insurance £21375
Monthly premium £27.11

I am considering if I would be better off trying to sell as it's not linked to my mortgage or would it be better to let it run it's term? I did look at selling a couple of years ago and was offered £12000, but since then regular bonus has been low any comments would be much appreciated.

EdInvestor

Please post the surrender value, the maturity projections and the interest rate you are paying on your mortgage.

stevecarro

Hi
My surrender value was £10400 which was at 31st May 2007, My latest projection puts the maturity at aprox £17000 and my mortgage rate is 4.99%. as I realised a few years ago that my endowment would not repay my mortgage, I converted my mortgage to a repayment so my endowment now is just for savings.

dunstonh

You need more upto date figures.

projections are needed as a guide but are not usually that useful as, for example, a 4% projection is 4% before charges. Yet you see the returns after charges. However, knowing that limitation means we get a rough guide to what is likely based on a few assumption.