Endowment Surrender value low

Patd94

I have an endowment(Windsor Life-Homemaker) that has been running for 14 years with 11 left to run.
I feel I am waisting my time leaving it in there.
I just recieved my yearly letter telling me how much it was worth.
I decided it was time to surrender it. I asked for a surrender value.
My fund value as of 7th October is 11,150 pounds.
I was told my surrender value is 7,400 pounds.
I thought this was a little low as my actual fund is worth 11,000.
It is a unit based policy(no with profits).
Is this typical or are they just hoping I will accept this low offer.

Any help would be greatly appreciated
Pat

dunstonh

I feel I am waisting my time leaving it in there.

Not neccessarily but could be.

I thought this was a little low as my actual fund is worth 11,000.
It is a unit based policy(no with profits).
Is this typical or are they just hoping I will accept this low offer.

There is no haggling with the surrender value. It is a defined calculation. Unit linked prices vary daily depending on the values of the underlying investments. If you have chosen equity funds then you have taken a hit in the last year. However, you are now buying units cheaper. In the long run the cheaper units make the most money.

However, whether the contract itself is best will depend on a number of factors and what alternatives you would be looking at.

Tom_Kelly

If it is unit linked then the surrender value should be the same as the fund value. If it is unitised with profits it may explain the difference. Get an IFA to look at it for you.

EdInvestor

It may have punitive surrender penalties. Find out more about the difference in values, the fall seems too high for a just a week or so although the market did crash over the time in question - has the surrender value now gone up again ?