Any Thoughts?

beepeevee

This is NOT an endowment policy, but.....! I am wondering about surrender values / "TEP", and so on. I don't even know whether there is a market out there for such a policy.

I have been paying into an old Pioneer Mutual "escalator plan" for almost 25 years now. The monthly premiums are £18. It is an open-ended policy which provides life insurance, the nominal sum insured being just under £5000. The insured person is almost 63.

Bonus shares are allocated annually and the current surrender value, net of CGT, is about £14000, and, it seems, rising. At the time of the last Bonus Share Allocation Notice at the end of 2004, the value was £10400.

Any thoughts on surrendering?

dunstonh

Sounds like a whole of life assurance. In which case, there being no maturity date and benefits only been paid on death. Therefore no-one would be interested in buying that third party.

beepeevee

Thanks for that D. However, given that there is no "open market" for such a policy, are there any advantages / disadvantages in surrendering sooner rather than later? As things stand at the moment, the life cover given by the policy is not essential.