possible surrendering of endowment policy

fishpond

Dear readers and experts alike.
I took out an endowment morgage in 1985 for £40000 with royal life and am paying £65/month
This was then moved to phoenix group and today, I have rung them out of curiosity and have been informed that the surrender value today is £27500.
Or, if I leave for the full term which will be oct 2010, could be somewhere between £30000 - £32000.(not guaranteed)
I am thinking that if I surrendered this and put it into mini isas for my wife and myself and put the rest into icici whom I already bank with, we would get more back in interest and wouldn't have the worries that go with endowments which we know very little about.
p.s I could use some of it to pay of the £12000 owing as a morgage on my business premises,
we are just about the wrong side of 55 now, so am looking to tidy things up a bit and keep some money in our pockets, not somebody elses.:D

sheslookinhot

Does the projection at Oct 10 include a terminal bonus or not ? The answer to that question may provide you with an answer to your situation

fishpond

Thank you
That is a very good point, I will ring them back today.

fishpond

I have just spoken to them, I couldn't get a straight answer about any terminal bonus, I am just repeatedly told that any terminal bonus is not guaranteed and the estimated maturity figures are 30000 @2% and 32000 @4% but this not guaranteed and the only way to find out is to wait untill it matures.
I am sure these guys have second jobs as either polititions or selling secondhand cars.(no offence meant to dealers in s/hand cars)
Unless anybody can give us a very good reason not to, my wife & I think we should surrender this policy and have done with it.

dimbo61

You took out an endowment in 1985 for £40,000 to pay off a mortgage on a property yes ?
Have you changed the mortgage to repayment ?
At £65 a month over next 2 years you will have paid £1600+ in premiums and
get back £1,000 TO £3000 EXTRA ( THATS £27500 + 1600= £29100 )
If you cash in the endowment now put 2x£3600 into cash ISA,s paying 6/6.5% and then 2x£3600 after april and also pay off the buisness mortgage ( you dont give the interest rate ) you will have £14,400 in cash ISA,s and
no buisness mortgage and £65 extra a month YOUR CALL GOOD LUCK

fishpond

Yes, it seems the only way we can lose is if we keep it.
So yes, its going to be surrendered, and the money invested in mini isas etc.
Many thanks for your replies.:beer: