friends provident endowment

MAXIMUM

Hi, I have a Friends Provident with profits endowment, £60 per month for 24 years, that has 7 years to run.
i'm not too worried about it not reaching it's target as I changed the mortgage to half repayment-half interest only and then reduced the interest only to £30,000 with a lump payment. I will hopefully reduce this by a further £6,000 next year.
What I would like to know is would I benefit from surrendering the policy, having it 'paid up', selling it or leaving things as they are in the hope that things may get better over the next 7 years? I would of course still invest the £60 per month and any proceeds of the surrender or sale.

EdInvestor

Post some inof

Guuaranteed sum assured
Declared bonuses
Surrender value
Maturity forecasts
Interest rate payable on mortgage

MAXIMUM

sorry about the delay, had to go to work.
According to my most recent statement:-
Sum assured, £14,630.00
Declared bonuses, £4,689.48
Minimum guaranteed cash sum at maturity, £19,319.48
Surrender value, £11,842.30
Maturity forcasts:-
4% £19,319.48, (that's what it says!!!).
5.5% £20,700.00
8% £23,900.00
Interest rate on mortgage, 4.99% fixed for remaining time.
Hope this helps.

EdInvestor

MAXIMUM wrote: »

Maturity forcasts:-
4% £19,319.48, (that's what it says!!!).
5.5% £20,700.00
8% £23,900.00

If you cashed in the policy, used the lump sum to reduce the loan and then increased the monthly mortgage payment by the amount of the endowment premium, by maturity your return would be £22,669. This compares with the endowment's guaranteed minimum at maturity of £19,319 - as you have noticed a terminal bonus is by no means guaranteed at Friends Provident.

You are likely to do better by dumping this endowment in the bin where it belongs and proceeding as above, replacing the life cover first if it is still needed.