Cashing in an endowment - help

rickaroo

I have a policy with prdential which splits into two funds;

UNITISED WITH-PROFITS FUND and
UNIT-LINKED FUNDS

I can cash them in for about £8k but does anyone know of a company willing to buy them?

dunstonh

There is no second hand market for unit linked funds. Unlike conventional with profits plans, the unit linked funds have a daily value. If I wanted units in those I could buy them direct from Pru at that price. So, that is why no-one would pay any more.

Pru are typically very good with endowments (100% success rate on their own and over 90% on Scot Am ones). So, make sure the surrender is not for the wrong reasons.

RichOneday_2

Have you considered getting a loan against the endowment from the life company instead of surrendering? There is usually a little publicised facility to take a very low cost loan against 90% of the surrender value, with the loan amount coming out of the eventual proceeds. You just pay the interest amount in the meantime but benefit from the endowment running full term.

It's a facility that's offered to prevent surrenders so it is worth a phone call. They can only say no!

Dick_here

RichOneday wrote: »

There is usually a little publicised facility to take a very low cost loan against 90% of the surrender value

10% interest rate with the C.I.S. I used to think it was "very low" too...

rickaroo

I have phoned a couple of companies to get a quote but they will not even touch the with profits part of the endowment.

Thanks very much to everyone for their help, looks like I'll need to take what the pru are offering.

One last thing, could I go down the miss-selling road because I did not have a clue that this was two different products??? I am looking at the policy in detail for once and think it is only performing at 3%

dunstonh

One last thing, could I go down the miss-selling road because I did not have a clue that this was two different products???

Its not two products. Pru offered a range of funds in their product and you have two of those funds.

I am looking at the policy in detail for once and think it is only performing at 3%

Its not performing at 3%. Much better than that.

rickaroo

Thanks dunstonh for your advice. I would love to keep this policy on to get the highest amount as possable but need to cash in the policy to get much needed funds. I recently asked for the surrender value which I have recieved but should I wait untill the next bonus date which is 3 weeks away in order to get an increased amount?

EdInvestor

rickaroo wrote: »

I recently asked for the surrender value which I have recieved but should I wait untill the next bonus date which is 3 weeks away in order to get an increased amount?

This could be unwise, as terminal bonuses are currently being reduced due to the falls in the stock and property markets over the past 18 months. Your surrender value contains the amount of TB so far accrued and could thus go down.

Search this forum for "terminal bonuses" and you will find a thread listing the reductions so far announced by other insurers.

dunstonh

unitised with profits funds adjust their terminal bonus/MVR daily.