Endownment help

grantmo

I currently have a standard life endownment which is performing not too well I'm not sure whether to surrender it or not as its maybe a bad time due to the recession? I would appreciate any advice offered.

Its a standard life policy which i have been paying since 1991, It was supposed to cover a £30000 mortgage but the value is dropping every year.

Start date: 07 Oct 1991 Maturity date: 07 Oct 2016 Expected date of last payment: 07 Sep 2016 Term: 25 years Your life cover Amount: £30,000.00 This will be the minimum death benefit paid if you die before the end of the plan term. Bonus details Last declared bonus: £39.40 Total bonus applied: £4,331.75

Current Surrender Value at 23 Apr 2009
Basic value 9,067.55 Final Bonus 33.20 Total plan value 9,100.75

Forecast
due 07 Oct 2016
3.75% pa£14,081.75*
5.5% pa £15,700.00
7.25% pa £17,500.00
Total future
payments £3,337.50


I hope thats enough info any help much appreciated :beer:

My mortgage rate is currently at 2.88%( nationwide tracker) I can only overpay £500 per month until next april as Im tied in.

My monthly payment is £37.50 to my endownment.


Thanks
Grant

grantmo

Anyone got any opinions please?

AGAR_2

Hello there
i am in the same boat with norwich union nearly identicle same start date called on tuesday about 9200 surrender value down 1k since jan 2009 also have a second taken out in 1996 same company worth 4700 on surrender lost about 300 since jan on a 26k mortgage that is 40 a month so you can see it is not good. Swapped to a repayment 5/6 years ago so they are both savings plans now or loosing plans however you look at it so what do we do surrender sell twist or keep going.you dont get much help with endowments here due to the crystall ball affect.thinking of selling or surrendering mine to pay of lump sum of mortgage down to 21k now then overpay and be mortgage free as soon as possible
all the best to you in what you decide to do

grantmo

thanks for replying agar.

Yes mine has dropped in value about the same amount since january as well about £750 in the last month so I dont want to lose anymore on it. I'm planning on doing the same as you by paying off whatever I get for it to my mortgage then overpaying my mortgage till it has gone