Endowment Policy - Keep or Get Rid?

grumpyoldgit_2

Hi, I need some objective advice about an endowment policy I have running at moment - originally needed for mortgage which has now been paid off and which is heading for shortfall on original sum assured.
Details:
low cost endowment target £38000 made up of:
Sum assured £20,414
Term Insurance £17,636
Commenced 1993, matures 2013
Rev bonus thus far £3,125
Weekly premium £18.75

I have other life insurance and investments

Questions:
1. Is this worth continuing with?
2. What alternatives do I have and if possible what would returns be like?
3. Should I sell, make paid up, cash in the policy?
4. Am I right in thinking any return would be tax free as the policy has run for more than 10yrs?

Thanks
GoG

dunstonh

The main issue with the with profits fund, is the provider. Who is it with? and what revision of with profits fund is it in? (i.e. does it say With Profits Series II or similar)

grumpyoldgit_2

Hi
It is with PMAS (Police Mutual) and there is no indication of revision don't know if this info helps:
Latest projections:
4% 26900
6% 31100
8% 35700

Thanks
GoG

grumpyoldgit_2

LO - anyone there?

EdInvestor

Hello Grumpy,

Didn't notice you down here, you would have been better to post in the endowment forum

grumpyoldgit wrote:

Weekly premium £18.75

Is that weekly or monthly? Can you also post the surrender value please?

grumpyoldgit_2

OOPs thought I had posted there! Wondered why it was so quiet.

Weekly premium
have not obtained surrender value yet
GoG