endowment dilemma keep or sell???

Zorse

I have three Std Life Endowments which I no longer need as I have paid off my mortgage. Should I keep paying the policies until they mature or cash in/ sell and invest the funds myself? I don't think I can do a worse job than them over the remaining term. Or am I missing something? Details are
First two policies are traditional type endowments third one is a unit linked.
Any advise appreciated

With profits started 1986
Sum £30000 on death
Surrender value £17012.40 (includes final bonus of £550.95)
Monthley prem £39.10 (£899.30 to pay)
Matures 2011
3.75% £18243.91
5.5% £18400
7.5% £19000
No MEP


With profits started 1988
Sum £15000 on death
Surrender value £7501.90 (includes final bonus of £189.70)
Monthley prem £20.05 (£822.05 to pay)
Matures 2011
3.75% £8440.00
5.5% £8920
7.5% £9430
MEP between £320 and £480 or could be nil!


Unitised plan
started 1994
Matures 2013
Pay on death £25000
Current Value £12952.39 (includes final bonus of £1133.59)
Premium £61.38 per month (£2577.96 to pay)
plan grows lower rate £16200
Mid rates £17100
High rates £18100
MEP between £640 and £962 or could be nil

puddy

i dont know what all the details mean but things cant get much lower can they? i would keep them till they mature, there might be a rush increase in the last couple of years

Zorse

Thanks for the opinion. It is just dispiriting keep paying the premiums and the value keeps decreasing I keep thinking if I sold and tied up the money in a notice account over the remaining term it might do better just feels like throwing good money after bad!!

magpiecottage

With Profits policies pay a guaranteed basic sum on maturity plus annual bonuses which are uncertain at outset but once added are guaranteed to be paid at maturity. They also pay (or may pay) a terminal bonus but there is no guarantee.

If you surrender early then the amount you get will be only a proportion.

Historically, the annual bonuses were relatively high and it meant the insurer took the risk of falls in the value of underlying investments but in recent years they have been very low and the terminal bonus is higher. This effectively means that what was once seen as a low risk investment forces you to gamble on whether the terminal bonus will be maintained.

To make a decision, you will need to know not only what the surrender value is but how much terminal bonus is included. You will also need to know how much the guaranteed basic sum is and how much annual bonus has been added to the policy so far.