surrender endowment policy dilema

dooply

hi advice needed please thinking of surrendering royal endowment,now part of phoenix group

figures are basic sum assured 4942.00
bonus todate 4292
premium month 21.87
surrender value 10149.00
maturity date dec 2011
also the surrender value is not guaranteed will this alter much when surrendered many thanks

hi maturity forecast are 3.75%@ 11500.00 [EMAIL="4.50%@12000.00"]4.50%@12000.00[/EMAIL] [EMAIL="5.25@12500.00"]5.25@12500.00[/EMAIL]
mortgage rate 7%

EdInvestor

Need some additional info

maturity forecasts
interest rate payable on mortgage

dooply

hi maturity forecast are 3.75%@ 11500.00 [EMAIL="4.50%@12000.00"]4.50%@12000.00[/EMAIL] [EMAIL="5.25@12500.00"]5.25@12500.00[/EMAIL]
mortgage rate 7%

flowrypot

I have a similar policy and I am keeping it because it contains life cover if I and i am trying to overpay my mortgage to cover any shortfall.

dooply

hi maturity forecast are 3.75%@ 11500.00 [EMAIL="4.50%@12000.00"]4.50%@12000.00[/EMAIL] [EMAIL="5.25@12500.00"]5.25@12500.00[/EMAIL]
mortgage rate 7%

EdInvestor

dooply wrote: »

hi maturity forecast are 3.75%@ 11500.00 [EMAIL="4.50%@12000.00"]4.50%@12000.00[/EMAIL] [EMAIL="5.25@12500.00"]5.25@12500.00[/EMAIL]

if you cashed this one in, using the lump sum to reduce the mortgage, and also increasing the monthly mortgage payment by the amount of the endowment premium at maturity you would end up with 13,314, which is better than all their forecasts. Most Phoenix endowments are invested mainly in bonds, so will show little growth after charges and cost of life cover and possibly end up with litttle or no terminal bonus.

If you need the life cover, replace it before surrendering to avoid any problems.

dooply

many thanks