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Time to cach in endowment?

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newpots
newpots Posts: 1 Newbie
in Mortgages & endowments
Is it a good idea to cash in an endowment policy. Mine matures in July 2009 and the terminal bonus rate is going down !!( from 82% Dec2007 to 64% as at May 2008 ) At monthly premiums of 63 pounds I have to put in about another 500Pounds for what may be a low final bonus.Does anyone else have the same problem

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  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    With maturity so close, I would continue to the end.

    I can see nothing to gain by cutting loose so late in the day.

    The other alternative would be to make the policy paid-up - this would mean no further premiums payable, but allow you to escape and surrender reductions your life company would impose by cashing in early.
  • paulfaz
    paulfaz Posts: 95 Forumite
    First Post First Anniversary
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    What's the terminal bonus going to be in £'s? - chances are it's going to be more than £500. You'll be penalised for cashing in early through the surrender value aswell.
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