to surrender or not

allen4625

i have a friends provident endowment policy half in managed fund half in with profits fund its due to end in nov 2006 projected return is 30000 surrender value now is 28500 payments of mortgage and endowment till nov 2006 is about 1500 ,tried to find out about a terminal bonus was told the with profits part atracts a terminal bonus but the amount is not known in advance it might i was told be 5 , 10 ,15 percent or even more or it might be nothing at all .does anyone have an idea what the terminal bonus rates have been from friendsprovident in the recent past. or are they just being coy or should i just surrender and walk away pay of what i can with amount from surrender live with the shortfall. any help or advice given will be gratefully received

EdInvestor

Might as well hang on, I'd have thought.FP's TBs have been rising a bit recently and the markets are doing well, so the managed part should perform.

I doubt you will lose if you hang on, and there's a reasonable change you'll make a gain.

dunstonh

You would be daft to walk away and suffer the penalty 6 months before maturity. They will be giving you a projected maturity value any day now (although you may have to request it with FP).