Should I continue with my N.U. Endowment?

guzzles

Hi,

I have just received some figures for my endowment, and was wondering whether one of the fiscal regulars could tell me whether its worth maintaining?

CGNU Life Fund With-profits Endowment Target amount = £24K
Monthly Premium = £40.03
Start Date Jun 1998
Maturity Date June 2023
Bonuses so far £1169
Surrender Value £3K

Maturity value estimate 4%= £16.4K 6%=£20.7K

What would I get if I put the cash into an ISA or equinvalent?

dunstonh

IIRC, a 1998 NU policy does allow switching to alternative unit linked funds. These would offer greater potential long term, although the unitised with profits fund from NU isnt that bad.

Seeing as you have paid the bulk of the charges already, it would probably be a good idea to investigate what switching options are available to you.

EdInvestor

guzzles wrote:

fiscal regular

I rather like that Thanks guzzler :T

Maturity value estimate 4%= £16.4K 6%=£20.7K

What would I get if I put the cash into an ISA or equinvalent?

In an ISA@ 4.5%, plus paying in premiums to maturity - 18,504, with no risk of course.

If you were able to get 6% on deposit, the return would be 22,057 which when compared with the projection above gives you an idea of the cost of charges and life cover taken out at NU.

You might get a better return by switching to other NU funds but the costs and risk will remain much the same.

If your mortgage interst rate is higher than what you can get in an ISA, then using the money to reduce the mortgage owed will give you the best guaranteed return.

dunstonh

You need to factor the cost of life cover. NU have some very good funds available including the property fund. The alternative funds have potential of 7-8% p.a.

We do not have enough information to make an accurate projection (which includes date of those values)