Help Please! Surrendering/Selling a Phoenix Endowment Policy

Jonesy33

Hi,

I'm just looking for a bit of advice really about a Endowment Policy I took out with Royal Sun Alliance in 1997. Basic facts are:

Monthly Premium: £55.07
Maturity Date: August 2022
Last Bonus (to 31/12/08): £36.77
Total Bonus Earned to 31/12/08: £1480.59
Target amount was £33750
Projected Final Amount assuming 4% each year: £20000
assuming 5% each year: £22000
assuming 6% each year: £24200

I'm pretty sure this Policy is a bad (!) one and I'd like to surrender/sell it. The current surrender value as of today is £6112. I've phoned APMM and they have said that currently they are not buying Phoenix Royal Sun Alliance Policies as they cannot beat the surrender value which is not what I wanted to hear! And that was before I even gave them the surrender value.

We now have a repayment mortgage so the plan would be to pay of 5% of our mortgage allowed this year.

I would really appreciate any advice about this, and if anyone can recommend any other companies I can approach about selling the endowment I would be very grateful.

Let me know if more info is needed.

Many Thanks

yelf

http://www.fastteps.com/ ?

EdInvestor

What interest rate are you paying on your mortgage?

Jonesy33

Hi EdInvestor, we are paying 4.99% interest on our mortgage.

EdInvestor

Jonesy33 wrote: »

Projected Final Amount assuming 4% each year: £20000
assuming 5% each year: £22000
assuming 6% each year: £24200

If you were to surrender this policy and use the lump sum to reduce the mortgage, also adding the endowment premium to the mortgage payment, by maturity you would have a return of £23,507, which is well ahead of their 4% forecast which is the max you could expect.

I would dump it asap.