Abbey Life Endowment Policy

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I would like some independent financial advice regarding my current endowment policy with Abbey Life Assurance Company Ltd.

In April 1992, I took out an endowment mortgage policy of £34,500 (target
amount) over a period of 25 years. I have been told that the endowmwent
policy is at HIGH RISK for not achieving the target amount in 11 years
time. The current predictions on a 6% growth rate will leave me with a £15,000 shortfall!!

I have contacted Abbey Life and they have made an offer of compensation
of £3,818.27 in accordance with the guidance issued by the FSA. This
calculation works out the amount of capital I would have repaid had I
taken out a repayment mortgage rather than the endowment mortgage.

If I surrender my Abbey Life Plans I will only get £5000 (plus £3818.27
making about £9000) of the £14,000 that I have paid in. That makes a
loss of about £5,000. However, if i don't surrender my policy i could be losing
£15,000 at the end of the plan.

What should i do? I know that predicting the stock market is difficult but i am wandering if i should cut my losses now or keep the plan and see if i will get my money back in 11 years time!!

Help!!!

I look forward to your reply.

Thank you for your time

Amir

ADDENDUM:

Hello again!!

Just replying to clarify some issues related to the initial plea for help. The Abbey Life Endowment Policy is linked with Life Assurance for me and my wife. The Endowment premium at commencement on the 02/04/92 was £79.79per month. A bolt-on of £10.00 per month was added on 02/04/97.

The current surrender value after 14 years is about £5,500. There are 11 years remaining on my mortagage term. The original mortgage lender was Halifax. The plan is not MIRAS qualifying.

I do not understand the 'decreasing term assurance premium of £36.97'?? What does this value represent??

An offer of compensation of £3,818.27 will still leave me £5,000 short if i surrendered the policy now. Should i accept the compensation and stick with the policy? Should i accept the compensation and surrender my policy and accept a loss of £5,000 rather than risk losing £15,000 at the end of the endowment plan.

Help me!!!

Amir