When to surrender life assurance policy

stockport

My Grandmother took out a life assurance policy when my Mother was born. We discovered this when my Grandfather died. My mother has asked me when would be best to surrender it. Am i right in assuming that a life assurance policy is like any other investment, where the value will be affected by the stock market? She is in no rush for the money, so is she better surrendering it when things pick up.

dunstonh

Am i right in assuming that a life assurance policy is like any other investment, where the value will be affected by the stock market?

No.

Investments do not have to be affected by the stockmarket. Only if the investments contain stockmarket content would the investment be affected by the stockmarket. The investments could be property or fixed interest securities or be a combination of these things. older life policies are often in a fund made up of a combination of these things.

so is she better surrendering it when things pick up.

Depends on the investments it is in and what happens in the future.

yelf

it may not even be investment linked and therefore have no surrender value (although it does sound like a WOL)