Just received endowment surrender value

modern_man

I have just received this information after asking for a surrender value for my Phoenix (was Swiss Life) policy which I made paid up in 2000. This is now just a saving policy. Any comments on should I surrender and save in a high interest savings account. The surrender value does look half decent with 5 years to go compared to the Paid Up Value.


Policy Type Low Cost Endowment With Profit Plan
Proposer *********
Life Assured *********
Commencement date Aug 1990
Maturity Date Aug 2013
Sum assured £47000 only applicable if premiums paid to date
Premium £928
Premium frequency Yearly
Assigned No
Paid Up Value £23800 payable on death or maturity
Current Surrender Value £22447
Fund invested in Phoenix Life Limited 100% With-Profits Fund

EdInvestor

modern_man wrote: »

The surrender value does look half decent with 5 years to go compared to the Paid Up Value.
Paid Up Value £23800 payable on death or maturity
Current Surrender Value £22447

Indeed, if you invested the surrender value in an account with a 5% return net of tax until maturity you would end up with 28,649.

modern_man

Thanks Ed, I was quite suprised as to the surrender value after all the bad press and remembering to check up on this policy.
My thinking was also that I can't do any worse than putting that sum into a savings account and using that account to fund a cash ISA for the next 5 years.
I do believe after receiving the information that I would receive back more than the maturity value if left to mature but no idea as to how much more, as that would be an unknown quantity but surely not £5000 more.