Maturing Pearl policy, should I extend it?

geosaver

I've had a 25 year Pearl Unit Linked policy which is due to mature at the end of the month. The policy is their managed fund which is split into the following:

UK Equities 69.32%
International Equities 15.25%
Gilts 8.74%
Property 3.21%
International Bonds 2.01%
Cash 1.43%

I have been putting in regular payments of £40 per month for the 25 year term.

It's value at December 2007 was £25,963. It's value now is £22,705.

I've been contacted by Pearl to ask if I want to now cash in the policy or extend it for another 10 years. I don't need the money right now so happy to keep it as a long term investment if it is likely to perform better over the next 10 years.

Any advice would be appreciated.

dunstonh

Pearl have been closed for new business for about 6 years now. They wont have an extension option, unless it was part of the original contract.

Even if they didn't, unless there is some other contractual reason that makes the contract stand out, i wouldn't use Pearl.

baby_boomer

Your policy has performed very poorly over 25 years.

Why would you want to leave your money with the same incompetents?

geosaver

dunstonh wrote: »

Pearl have been closed for new business for about 6 years now. They wont have an extension option, unless it was part of the original contract.

Even if they didn't, unless there is some other contractual reason that makes the contract stand out, i wouldn't use Pearl.

Thanks for comments. It's still under the Pearl name but it is now managed by NPI Ltd.

Sounds like it would be best for me to cash it in then. Which companies could I look at for an equivalent (but better) policy?

dunstonh

It's still under the Pearl name but it is now managed by NPI Ltd.

Its the same thing. Pearl, NPI and London Life are all brands of the same company. Pearl decided to segment all their unit linked plans under the NPI brand. It saves them money in the long run as they dont have to have two managers (and two lots of costs that go with it. Manager in this case is not indivdual but company).

Which companies could I look at for an equivalent (but better) policy?

Impossible to say without knowing your circumstances. There are tens of thousands of options available and they need filtering down. There is no one best option that fits all. It also depends on how you would buy. e.g. would you DIY or use an IFA?