Advice / comment re Endowment policy

bigsteve

I recently received a Red Letter from Legal & General regarding my Build up Mortgage plan Endowment policy and would appreciate any helpful advice and comments please.

Start Date 5 Nov 1993
Maturity Date 5 Nov 2018
Target amount £57,000

Proj final amount 4%

bigsteve

Sorry, do not know hwat happened then

Proj final amount 4% £36,100
6% £42,500
8% £49,400

Monthly payment £86.93

Now I know that I will have difficulty in getting life assurance due to my weight ( too short!).

So I was wondering whether to keep it going or sell /cash it in.
There is anohe 10 year's left on the policy and a lot can change during that time.

Any thoughts?

Thanks

Steve

sdooley

It can't hurt to find out the value you'd get for a surrender or re-sale of the policy. If you find that out and put it on here some of the more knowledgeable posters might be able to help.

dunstonh

How is it invested - unit linked or with profits? if unit linked what investment funds?

bigsteve

Thank you for your speedy responses. I will reply with more data tomorrow.

EdInvestor

As well as the surrender value please also post the interest rate you are paying on your mortgage.

When you say you will have difficulty getting life cover, do you mean getting it at all, or getting it at reasonable cost?

bigsteve

Here is more info…
Legal & General
Endowment Assurance, With Profits, Joint Life, First Death (normal build up)
Start Date 5 Nov 1993
Maturity Date 5 Nov 2018
Monthly Payment £86.93
With Profits Bonus Statement for 2007, dated May 2008
Basic Sum Assured £19950.00
Guaranteed Life cover £57,000
Existing bonuses £6,126.20
2007 Annual bonus rate
Applied to basic sum 1.25%
Assured
2007 Annual bonus rate
Applied to existing
bonuses 1.25%
2007 Total annual
Bonuses added £326.00
Total of basic sum
Assured + ann bonuses
To 31 Dec 2007 £26,402.20
Current final bonus rate 86%

This endowment no longer forms a payment plan towards my mortgage- I switched to repayment about 6 years ago. So in effect it is a form of savings. My current fixed rate 5yr deal has about 18 month to run at 4.84%

I would have trouble getting life cover at reasonable cost.

Thanks

Steve

bigsteve

any thought welcome

David_Mee

If its effectively a savings plan then you need to (i) get a quote for life insurance (ii) see what rate you could earn by cashing in policy and investing. Compare this to life cover you have and return you are getting.

EdInvestor

Still need the surrender value to do a calculation.

bigsteve

Siorry for the delay,

Contacted L&G this morning, 30th September 2008 9:30

Surrender Value (not guaranteed) is £ 17,476.70

Have asked aap to see what they say too.