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surrender or carry on til maturity?
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00ec25
Posts: 9,123 Forumite
following a suggestion on the savings board would anyone care to advise about my endowment policy: keep it or surrender it?
1. basic with profits endowment policy with Standard Life for a mortgage. Sum assured is 40,000 but latest projected maturity is 19,300. It matures in 2016 and is classed as high risk of shortfall (no sxxt sherlock!).
2. premium is 50.60 per month (ie 607 pa) So total paid to date is 10,926 with a furtehr 4,249 to go giving final cost of 15175 aginst possible maturity of 19,300
3. last year the policy value decreased - ie was worth less than the £607 I had paid in that year
4. My mortgage is paid off so I no longer need this policy to cover the repayment and the life cover element is also irrelevant.
I have simply kept it going because I was used to the premium going out each month and assumed the return would improve by 2016 when the terminal bonus kicks in and so kept it as a "savings" vehicle.
No one (?) can know what bonus Std Life will be paying in 7 years time, so the final value is speculation, but I can appraise surrender value now versus secondary market sale versus saving 50.60 per month.
PS besides AAP, (who advertise heavily and therefore can't be any good!), what other companies still buy endowments and who do they sell them on to as those buyers must still rate an endowments as an investment otherwise why do they buy them secondhand?
(I could not be bothered to try a misselling claim but not sure i want to keep funding Std Life if they are losing money)
1. basic with profits endowment policy with Standard Life for a mortgage. Sum assured is 40,000 but latest projected maturity is 19,300. It matures in 2016 and is classed as high risk of shortfall (no sxxt sherlock!).
2. premium is 50.60 per month (ie 607 pa) So total paid to date is 10,926 with a furtehr 4,249 to go giving final cost of 15175 aginst possible maturity of 19,300
3. last year the policy value decreased - ie was worth less than the £607 I had paid in that year
4. My mortgage is paid off so I no longer need this policy to cover the repayment and the life cover element is also irrelevant.
I have simply kept it going because I was used to the premium going out each month and assumed the return would improve by 2016 when the terminal bonus kicks in and so kept it as a "savings" vehicle.
No one (?) can know what bonus Std Life will be paying in 7 years time, so the final value is speculation, but I can appraise surrender value now versus secondary market sale versus saving 50.60 per month.
PS besides AAP, (who advertise heavily and therefore can't be any good!), what other companies still buy endowments and who do they sell them on to as those buyers must still rate an endowments as an investment otherwise why do they buy them secondhand?
(I could not be bothered to try a misselling claim but not sure i want to keep funding Std Life if they are losing money)
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bump???? ...anyone???0
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Trying to keep it simple...
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