advice on endowment

urbantus

Hi

What is my best option on the following endowment mortgage

Surrender it now
Continue paying into it ie 600.00 pounds per annum for next three years
Let it run with no further payments

I get life cover with this policy of 40,000.00 pounds on the death of me or my wife

My mortgage is fully paid off by other means

Current Value
Surrender value 27370.00
Claim value on death 40000.00

Loan Value 19505.00 based on 5% pa

Paid up sum assured with profits 23336.00

Ie no more premiums to be paid after march 2009

Projected Values

Possible Maturity Benefit 32800.00 at assumed 4% pa
on April 2012 34700.00 at assumed 6% pa

assuming a further three years premium at 600.00 pounds pa


Possible Maturity Benefit 30800.00 at assumed 4% pa
on April 2012 32600.00 at assumed 6% pa

assuming no more premiums paid

Regards

Urby

haggle_2

I know for many homeowners endowments have been a disaster. You brought a sure thing for paying off your mortgage but it turns out it could have been an expensive for you/me but the IFA must be loaded. I'd get some pro advice before getting a cash endowment. Best of luck.

qprfcmark

Urby..........Keep paying until maturity. With such a short period until maturity you will suffer massive penalties along with a possible loss of a Terminal Bonus and life cover. How did you get a quote for a Policy loan?!!!!! I have been told by my insurer that they no longer offer this, even though the surrender value is £12K? I have also contacted the bank which issued a loan on the policy previously on behalf of the insurer, but they are also not interested. Any advise on getting a policy loan?

urbantus

qprfcmark wrote: »

Urby..........Keep paying until maturity. With such a short period until maturity you will suffer massive penalties along with a possible loss of a Terminal Bonus and life cover. How did you get a quote for a Policy loan?!!!!! I have been told by my insurer that they no longer offer this, even though the surrender value is £12K? I have also contacted the bank which issued a loan on the policy previously on behalf of the insurer, but they are also not interested. Any advise on getting a policy loan?

Thx for info

What is a policy loan

I took out this endowment in the late 80s as a means of paying my mortgage off in 2012

The endowment came with life cover
ie If my wife or I died before 2012 the survivor would get 40k

Regards

Urby

I know its too late to complain about miselling

But is it worth trying

EdInvestor

Post some more info

Provider
Guaranteed sum assured
Declared bonuses
Monthly premium

urbantus

EdInvestor wrote: »

Post some more info

Provider
Guaranteed sum assured
Declared bonuses
Monthly premium

PRUDENTIAL

40 k - original sum

approx 11k

monthly premium 50.00 pounds

thx

EdInvestor

urbantus wrote: »

Possible Maturity Benefit
32800.00 at assumed 4% pa
34700.00 at assumed 6% pa

If you cashed in this policy and saved the lump sum in an account getting 3% net interest over the period, also paying in the premiums to maturity, your total return would be 31,792.This would be a guaranteed return.

You need to compare this with the Pru's projected returns, bearing in mind that markets have fallen dramatically over the past 2 years and this fall is not yet completely reflected in policy values.Thus it is quite possible that rather than an increase of 4% or 6% over the next 3 years, there will instead be a fall in value, which could be larger than that.

In that case you would get less than if you took the money now, and your premiums would be wasted.

urbantus

Stated thus Id be foolish to leave it running with monthly payments of 50 pounds

I would need to buy some kind of insurance for my wife and I to replace that included within the endowment