would you cash an endownment

celtic1888

my family are going to pay of my interest paying mortgae which has 10 years to run, saving me £14000, yesss

i have the 10 years to pay on the endownment of £64 per month
would i be better to cash this in .....which is only the money ive paid so far
or wait until it matures at the end of the ten years?

i dont really need the money, but is the endownment still worth paying after all the bad press, and the shortfalls ...........oh its with the prudential

cheers
william

dunstonh

Many of the Pru endowments went back on target or into surplus again this year. If this trend continues, you could see all Pru endowments back on track to pay a surplus within 2 years. Pru do have one of the strongest funds out there.

EdInvestor

Hi William

Post some figs so we can see

Guaranteed sum assured
Declared bonuses
Surrender value ( ring up and ask)
Monthly premium
Maturity date

celtic1888

im not really looking for exact figures of trading in the endownment
im more interested in the principal of keeping it, if you can afford the monthly payment, ie; is an endowment a good savings policy rather than a house paying facility?
if companys like aap etc can give you more of a surrender value than your insurance company they must be worth keeping if they are buying them....

here are some rough figures anyway for you to digest

Guaranteed sum assured 9450
Declared bonuses 4351
Surrender value ( ring up and ask) 8200
Monthly premium 38.10
Maturity date July 2015

i do have another small one which matures in 4 years for £14 per month
fpr £3500 which they say is on target.

thanks for the help

celtic1888

hi anyone on that can have a look at these figures and questions!
cheers in advance
will

EdInvestor

celtic1888 wrote:

...is an endowment a good savings policy rather than a house paying facility?

Often they aren't these days because they have high charges,are invested in low returning assets and include life cover that people don't need.

If you cashed this one in and put the proceeds in the bank @4% also paying in the premiums to maturity you should end up with 17,731.

This compares with the policy's guaranteed value of 13,801.The vast majority of any extra you might get in terminal bonus is unguaranteed and depends on stockmarket returns.

The Pru's fund is quite a reasonable one and might beat cash but why take the risk? Frankly, I expect a much better return than cash if I am taking the risk of investing in the stockmarket, not a lower return.