Cashing in with-profits endowment

PensionKid

Hi,

I have a with profits endowment with Royal London that has been running for nearly 10 years and i am thinking of surrendering it. I only pay £40 a month into it and in 2005 the surrender value was £2460. I am hoping that the surrender value today may be worth around £3500 or more??

I can see from the previous surrender enquiry that i can 'sell it and there may be benefits in doing this'. Can someone explain what they mean by this and which route i should go please?

Thanks,

Pension Kid

:beer:

turbobob

You can sell certain policies on the traded endowment policy market. The advantage in doing this is there is a chance that you can sell it for more than the surrender value. Obviously this depends on a buyer being willing to pay more than the surrender value for it. See the Association of Policy Market Makers site for more info.

There is a possible disadvantage in these volatile times.. If for some reason the traded endowment process drags out and ultimately does not complete, then the surrender value could decrease in the meantime.

I've heard of a few cases like this recently, where the customers delay has resulted in the offer from the traded endowment policy company expiring. They then find that their offer to buy above the SV is withdrawn. The SV decreases in the meantime. The customer then complains to the life company that either they shouldn't have been advised of the option of selling the policy or that the decrease in the surrender value should not be allowed.

EdInvestor

Post some info about the endowment to see whether it is worth keeping (RL endowments are sometimes quite good ).


Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
maturity forecasts
Interest rate payable on mortgage

PensionKid

OK Just got the quote back.

Surrender value £4028

Last 2007 statement was

Basic guaranteed value £11224
Total Previous annual bonus £1459
2007 Bonus £56.12
Total Guaranteed value £12739

Started 1999 Ends 2024

This is a personal endowment, not at all linked to my mortgage.

Thanks for any information.

PensionKid

EdInvestor

EdInvestor wrote: »

maturity forecasts
Interest rate payable on mortgage

Still need this info: it doesn't matter that the endowment isn;t linked to the mortgage.