Cashing in an Endowment Policy

odorus

Hi,
I have an endowment policy, it's a flexible mortgage plan from L&G. It is 11 years old and due to mature in 2022. I have just received my statement from L&G and called them to find out what the surrender value of the policy would be.

The amount I would get would clear pretty much all my credit card debts. I realise that the insurance company don't offer the best value so would appreciate thoughts on the subject.

I was not mis-sold the policy and have other life policies in place to cover my needs, being single I have no dependants.

Ideally I want to clear my credit card debts and feel this may be the best option.

Just seen that it is a unit linked plan, which might make it less atractive to 3rd parties from what I have read so far.

Thanks

Matt

EdInvestor

Post the policy maturity projections, the current value and monthly premium and the interest rate payable on the debts.

odorus

EdInvestor wrote: »

Post the policy maturity projections, the current value and monthly premium and the interest rate payable on the debts.

The last projections I got for the Policy were for around £35k, that was a few years ago now.
The current value as of today is £11069.60, but it changes based on the markets. The monthly premium is £82.18.
The interest on the credit card debts ranges from around 19%-35% APR.

EdInvestor

Sorry, do need the updated projections to do the calculation.

odorus

EdInvestor wrote: »

Sorry, do need the updated projections to do the calculation.

I just phoned L&G , they could only give me basic projections. These are

4% £32100
6% £39900
8% £49700

For when it matures in 2022.

Thanks

Matt