Sell endowment or not

U729218

I have just been offered £1,200 compensation for being mis-sold our poilcy form royal life sun alliance. they have said it is worth £21,000 at the moment and i am now not sure if i should surrender this and go for a 100% repayment.
Start date 02/09/85 finishes 2010
£10,608 with profits benefit £34,000
Monthly prem £45.40
as of 31/12/04 total Bonus £10,413

If anyone has any advise as im really unsure what to do for the best ??

Thanks

gwarren_2

wow you were lucky I had the same policy but took it out one month later,same year.
however i wasnt missold mine so got no compo whatsoever,I ended up selling mine and paying it off the mortgage. :mad:

EdInvestor

I would junk this policy and use it to reduce the mortgage.

If you surrendered it and put it on deposit@ 4% until maturity, also paying in the premiums,you would end up with 26,910 compared with your guaranteeed value at maturity (which is all you can expect) of 21,021.

A no brainer.

U729218

gwarren wrote:

wow you were lucky I had the same policy but took it out one month later,same year.
however i wasnt missold mine so got no compo whatsoever,I ended up selling mine and paying it off the mortgage. :mad:

Sorry to hear you didnt get any Comp !!

exil

I doubt if the surrender value is really 21k, it;s usually a lot less than sum assured plus bonuses.

EdInvestor

I doubt if the surrender value is really 21k, it;s usually a lot less than sum assured plus bonuses.

Rereading the OP's first post, exil's right, it's not clear.

The OP should ring up and check the amount of the "guaranteed value" and the "surrender value" (which should be lower), and repost the figs.

As it's an RSA endowment, it's still likely to be a duff policy, but the gain in surrendering it may be lower if the figures are wrong.

exil

I've got a similar policy, with a different provider. The surrender value is considerably less than the assured+bonus, but I'm allowed to take out a %age every year without penalty, which is what my IFA has advised me to do.