Should I cash in my endowment?

jimjoeray

Should I cash in my endowment policy?

Like many others it would be very helpful to have an indication as to whether to cash my Sun Alliance (Phoenix) policy in or not. The details are:

Company: Sun Alliance
Guaranteed sum assured: £34,700
Declared bonuses: £5,000.74p at end of 2004
Surrender value: £11,018
Maturity date: 09/06/2014
Projected maturity values: £19,100 - £21,100 (They've gone up £200 since last year)

I am a bit naive with this. Could you also clarify the following:
1. Does the projected maturity include the declared bonuses?
2. What effect would it have if I made it paid up?

Any advice would be much appreciated.

ReportInvestor

I think you must be confusing the guaranteed sum assured with the target amount your endowment was aiming at when you took it out.

Check again.

jimjoeray

You are right I am! What is the guaranteed sum assured? I thought this was the amount paid if death occured. Additionally this policy is no longer required for a mortgage and I have continued it for savings/life policy only.

kenshaz

Keep it simple ,you lose out when you cash in

jimjoeray

Any ideas?

1. Does the projected maturity include the declared bonuses?
2. What effect would it have if I made it paid up?

EdInvestor

JJR

Have answered you via PM as requested.

Keep it simple ,you lose out when you cash in

Things have changed I'm afraid. That's certainly not so in this case.

JollyNolly

jimjoeray and sarahsaver - has either of you considered selling your endowment to a third party?? I've been considering cashing mine in to pay off some debts, but (a) I've noticed that the surrender value seems to have risen quite a bit over the last few months, and (b) I've read that there's a market in sold-on endowments, which could raise more cash.

EdInvestor

Some endowments can be sold, some can't. Do a Google search for "TEP traders" to find companies that trade endowments and see if they will make you an offer. Phoenix/RSA endowments are very unlikely to attract serious interest.

Sarahsaver

This issue has come to the fore again, as I am strapped for cash! Should I sell it? I could really do without paying it right now;)

EdInvestor

Sarah

I can't help you unless you post the details about the policy as asked for in my earlier post.