Endowment Maturity Values

dwsjarcmcd

I had a Friends Provident endownment mature recently and the value was less that I had paid in. Disappointing but fair enough but it did make me have a look at some others I had. I have 2 with Chidren's Mutual for my daughter which mature next year.

I asked them for a Surrender Value, a paid up value and an estimated maturity value. The upshot is that the paid up value is £100 less than the maturity value, although I would pay £300 in premiums over the year. It wasn't worth surrendering them given the short timescale to maturity.

I then spoke to my ex-wife, who has a Standard Life endowment, due to mature in 4 years for which she pays £62 p.m. She phoned them and asked the same questions I asked the Children's Mutual.

In her case, the surrender value was only £500 less than the estimated maturity value. Over the next 4 years, she would have paid almost £3,000 in premiums to get £500 back.

I think that with the low interest and bonus rates and the insurers charges, it may be worth a telephone call to ask for surrender values, paid up values and estimated maturity values.

None of our endowments were mortgage related and we don't need the life cover, which are clearly issues to consider but it is worth investigating your options. You may be paying premiums to get significantly less than you expect.

I think it's worth a phone call!

David