Do I surrender my Endowment Policy

belfastgal

These figures mean nothing to me can anyone help?
I have an Endownment taken out 13 years ago with Clerical Medical. It was for £25,000 but we have paid off our mortgage a few years ago but kept paying the endownment anyway.It matures in Dec 2017.

Here goes :
Sum assured £8275
Existing Revisionary Bonus £2695
Total £10970

Illustrative Future Bonus @ 4% £1029
Illustrative Future Bonus @ 6% £4129
Illustrative Future Bonus @ 8% £7629

Total Maturity Value @ 4% £12,000
Total Maturity Value @ 6% £15,100
Total Maturity Value @ 8% £18,600

Whart should I do bearing in mind I would have to keep paying £34.75 for another 12 years ?
At last !!!!!!!!!!!!!!!!
Got a surrender value on this policy from clerical medical : £5196.00 i have already paid this for 13 years 2 months at £34.75 what do you think???????

EdInvestor

Hi BG

If you could post the surrender value, we could give a view.:) You probably need to ring them up and ask.

belfastgal

You are correct. i think i did that a few years ago.will get surrender value and post back on here.....

exil

It's done pretty well so far - you've put in £5000 in 13 yrs and it's worth
£11,000.

Surrender value is the vital parameter. You need to compare that with what you would
get in 12 years minus what you will be paying in. In case I misunderstood the last
post, you of course need the surrender value TODAY.

Alternative - make it "paid up". It'll continue to grow but you'll not need to pay anything more in.

belfastgal

I have edited my first post as I now have a surrender value if somone could advise me.

EdInvestor

belfastgal wrote:

It was for £25,000 but we have paid off our mortgage a few years ago but kept paying the endownment anyway.

Total £10970

Total Maturity Value @ 4% £12,000
Total Maturity Value @ 6% £15,100

If you surrendered this policy and put the proceeds in the bank on deposit @4% also paying in the premiums, you should end up with 13,785 at the end of the term.

This is higher than the guaranteed value of 10,970 and the projected maturity value @4% of 12,000, reflecting the cost of the life assurance and the charges.

If you don't need the life assurance, there seems little point in continuing to pay into this policy and taking a risk for a probable return that is less than cash. I would thus cash this in and either save the money in a no-risk cash ISA, or put it in a modern risk-based investment with better likely returns.

regularsaver1

If you think about it - you currently pay £34.75 - but a proportion of it is to life cover (that you currently do not need) and the rest ot the endowment - you could cash it in, and then save regularly into a high interest account with the premium you wouls not be missing.

belfastgal

edinvestor , and regular saver
thanks for your advise, i think i will cash in....
cheers!!!!!

donstermonster

if you have decided to cash it in at least get all your figures up to date then go to

http://www.apmm.com/

and see how much they will buy it from you for , as long as it is more than your surrender value you may as well sell it to them

It is dead easy to do and if you wish can all be done on line

best of Luck

DM

regularsaver1

Yeah some will buy it - for more than the surrender value