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Endowment - to cash-in or not?

Hi,

I've been paying into an endowment since October 2000, which at the time, I took out to cover part of a mortgage.

I no longer have the mortgage, but am still paying into the endowment, however, I have been notified that there is a significant risk of a shortfall on the policy (in fact, they've been telling me that for a while, but I'm only just getting round to doing something about it).

I understand that if I make the policy 'paid up', i.e. stop paying into it, I will only be entitled to the cash-in value at that time (which is slightly less than the amount I have actually paid in to the policy).
Furthermore, the life insurance cover will only be worth the same amount.

What is the current advice on endowments? Is it worth keeping or am I just compounding my losses by continuing to pay in?

I get life insurance through my employer, so do not need that facility at the moment.

Any advice would be appreciated.
Thanks.

Comments

  • alexeix
    alexeix Posts: 24 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hi,

    Are there any experts out there, who can advise about this?

    What are my options here?

    The endowment is with Friends Provident.
    Thanks in advance.
  • Just considering the same thing with our Friends Provident policy that we have had since 1991 - targetted to under achieve by as much as £20k!
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    alexeix wrote: »
    Hi,

    Are there any experts out there, who can advise about this?

    What are my options here?

    The endowment is with Friends Provident.
    Thanks in advance.

    You need to give us FULL details of the endowment, from your last endowment statement, plus the cash-in value and the monthly premium you pay.
    "You were only supposed to blow the bl**dy doors off!!"
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Post some details

    Guaranteed sum assured
    Declared bonuses
    Surrender value
    Monthly premium
    Maturity date
    Maturity forecasts

    If you cashed in the policy what would you do with the money?
    Trying to keep it simple...;)
This discussion has been closed.
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