Advice on surrendering a Phoenix Endowment

mparkeresq

Hi All,

I am in a position where I need to surrender an endowment policy due to divorce. We have both agreed that the proceeds will be retained for the educational needs of the children in the future so want to make sure that I am getting the best possible value. Neither of us require the investment for properties or the life cover.

What would be the best thing to do with it? Surrender, sell, stop payments, etc...

Its a Phoenix (ex RSA Homeplan) policy (with profits) with values as follows:
Guaranteed Sum Assured: £21690
Previous bonuses: £1604 (in ten years - what a joke!)
This years bonus: £58 (are the having a laugh?)
Total benefits: £23352
Monthly payment £88.56

I have been paying into the policy for 10 years now. I did ask about surrendering the policy a few years ago, but was told that I could not surrender it until 10 years, but was not given an explanation why.

I need to cut back on my monthly outgoings, so want to stop paying into the policy as soon as possible.

Should I be expecting to get less back that I have paid into the policy? I will call them tomorrow for a surrender value I think.

Any help, advice, shoulders to cry on appreciated.

Matt

EdInvestor

You should surrender it, selling is not an option and making it paid up is a bad idea. The 10 year rule relates to tax. If you need the life cover, replace it before you surrender.

mparkeresq

Just got a surrender value and it 2 grand less than I have paid into it. I thought that this was supposed to be an investment fund - what a joke!

They have offered some advice on selling it - apparently just google "traded endowment policy market"

EdInvestor - could you explain why selling is not an option? Do you think I would get back even less than the surrender value?

EdInvestor

You can try but I don't think the traders will offer you anything.

https://www.apmm.org

Any hidden value in Phoenix policies has already been stripped out by Phoenix themselves