Aviva - surrender value

MARIGOLD52

I need some advice please. I have an endowment policy with Aviva but no longer have a mortgage having downsized. I asked for a sv today which is just over 11k. the current value is 15k and it does not mature till 2018. I pay £76 per month. In view of their promise which is " not 100% guaranteed" is it worth continuing. I'm due to get £370 over the nxt couple of months from the reattribution offer. Should I just get out - help please.

dunstonh

In view of their promise which is " not 100% guaranteed" is it worth continuing.

The promise is fully funded and there is no reason to think they will pull it. How much is your promise value?

MARIGOLD52

Thanks for replying. He just said it could be anything up to £7,700.

dunstonh

Chances are that it will be £7700 then as it will only be less if it hits target or the £7700 takes it through the target figure (i.e. you get the lower of target amount or the value plus the £7700).

So if the current value is £15k, add on £7700 and that makes the minimum maturity (bit of an assumption that you have no final bonus at the mo) £22,700.

You have about £8000 left to pay. Add that to surrender value and you have £19,000.

So, ignoring future gains and assuming no bonuses are added again, you are around £3,000 worse off if you surrender.

What would you do with the money if you surrendered?

MARIGOLD52

Thanks, that hasmade it a lot clearer. Hadn't got any plans for it really - just to split it with my ex, who is leaving it up to me anyway. As interest rates are so low at the moment probably makes sense to leave it where it is. Maybe look at it again in 12 months time or if I do need t he money at some time. What are your views on selling endowments or is it not the right climate for that at the mo.

We also have an endowment with Clerical medical which has under 3 years to run. this has a basic sum assured of £4004 and accrued bonuses of 3614. I pay £17 per month. The surrender value is £6556 . Bonuses for the last 3 yrs have been £53, £88 and £90. I have about £550 still to pay. Does this company pay any kind of final bonus.

regards, chrissy

MARIGOLD52

just bringing this to the top for more help