Phoenix/RSA policy – should I surrender policy, freeze it or keep going ?

allan6502

Hi and thanks for reading !

I initially took out this policy to pay of mortgage of around £53100.00

Policy is “with profits”

Started: 15/12/1998
Due to end: 15/11/2023

Monthly payment of £99.77

At 31/12/2005
Existing Bonus: £1653.46
Annual Bonus: £64.36
Total Bonus: £1717.82
Bonus Rate: 0.250 %


Sum assured £24 092 with profits guaranteed death benefit £53 100.00

Changed to repayment type mortgage in 2003 but kept policy going.

Successfully claimed that I was mis-sold policy getting £3428.33 in compensation.

Current surrender value £6482.00.

My question is…. Should I surrender my policy, freeze it or keep going?
I’m quite clueless with this kinda thing and would greatly appreciate anyones help in this matter.

I have not yet agreed to the compensation claim figure.. is this sum a fair one? Should I agree?

EdInvestor

Hi Allan

If you surrendered this policy and placed the money on deposit @4% also paying in the premiums to maturity, you should end up with 41,676.

This compares with the guaranteed value of 25,809 which as you can see is increasing annually by only very small amounts like 0.25%. You cannot expect a terminal bonus with this policy.

I suggest you surrender it, and use the proceeds, plus the compensation money to reduce the mortgage or pay off any other debt with a higher interest rate.

There is no point in hanging onto these Phoenix zombie endowments.

allan6502

Thanks so very much for your reply.

allan6502

Is it best that I surrender the policy to RSA/Phoenix or is it worth shopping around ?

Thanks

EdInvestor

You can try shopping around, though it might not be much (if anything). Google search for "TEP traders".

Let us know if you get an offer.

ScoobyZ

allan6502 wrote:

Is it best that I surrender the policy to RSA/Phoenix or is it worth shopping around ?

Thanks

Dont waste time selling. Just cash in. I did ring fill in forms and try everywhere. In the end couldnt sell as didnt have original policy document. When I eventually cashed it in got more anyway, a few hundred. Some people were offering less than surrender value !

The policy seemed to jump up in January too by £1500. got almost £12000