phoenix endowment maturing feb 2013

chatterboxchris

Help. I have three endowments one is about to mature and has performed.
The other two are a Phoenix originally a Royal Life policy and a Hsbc policy.
They both finish in 2013 and Im not sure whether to surrender them now and pay off a chunk off my mortage. When I phoned around the endowment buying companies they werent interested does this tell me something?
I could then overpay my mortgage with the money i have benn paying on the endowments.

Robert_Sterling_3

chatterboxchris wrote: »

When I phoned around the endowment buying companies they werent interested does this tell me something?

Yes. It tells you that they are not interested.

chatterboxchris

Hi yes I realise that I just wondered whether it is worth surrendering them and paying a lump off my mortgage instead.

EdInvestor

Post some info about them

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

chatterboxchris

Thanks Ed I will gather all the information on Monday and post it then,

chatterboxchris

Hi Ed,
phoenix policy (was Royal life)
Death benefit £34,179.00
Guaranteed Sum assured £10,459.00
Declared Bonus £6,855.00
Surrender value £17,108.00
Monthly payament £46.17
Maturity date 19/2/09
Maturity projections 4% £21,100.00
6% £22,900.00

Mortgage on 3% apr variable finishes aug 2013 current balance £19,675.85
Mortgage payment £104.71 overpaying by 20%

Any help would be appreciated on whether to surrender now or not and pay most of the mortgage off.

Many thanks

EdInvestor

chatterboxchris wrote: »

Maturity date 19/2/09

Is this the right endowment?

chatterboxchris

Hi Ed yes this is the right endowment. As you can see there is a £13,000 shortfall which I claimed on and received about £3000.00 The other one is with Hsbc and I am still waiting for figures from them surrender value about £2800 AUG 2013.

Many thanks

EdInvestor

chatterboxchris wrote: »

Guaranteed Sum assured £10,459.00
Declared Bonus £6,855.00
Surrender value £17,108.00
Monthly payament £46.17
Maturity date 19/2/09
Maturity projections 4% £21,100.00
6% £22,900.00

This endowment matures imminently and will pay you at least the guaranteed value which is 17,314.This compares with the surrender value of 17,108. Even if you have to pay another month's premium you will get more if you wait till maturity even if there is no terminal bonus.

chatterboxchris

Hi Ed
whoops the policy matures 19/2/2013 sorry.

Many thanks

EdInvestor

chatterboxchris wrote: »

Maturity projections 4% £21,100.00
6% £22,900.00

If you surrendered this one and used the lump sum to reduce the mortgage, also raising the mortgage payment by the endowment premium your equivalent return at maturity would be 21,602.

That's a guaranteed return with no risk It's pretty unlikely your endowment will make more than this in the period, so the risk of holding it is unlikely to pay off.