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how to calculate whether or not to surrender?
jovielle
Posts: 5 Forumite
Can anyone explain how to calculate whether it's better off to surrender or keep an endowment?
First the good news:
Phoenix have just sent a letter saying that they're upholding the complaint - woohoo! They're offering £3,155.34 in compensation.
Now the headache:
Phoenix are offering 2 choices - accept the compensation and keep the policy, or accept the compensation and surrender the endowment.
What to do?
The endowment is my dad's, and thanks to MSE I managed to get my head around endowments enough to find grounds for complaint for compensation, but I don't understand how to calculate whether or not it's more or less benefitial to surrender the policy.
The figures:
Policy: Homebuyers Economy G Plan with Royal Life
Surrender value (14/06/06): £27,694.00
Total bonus earned to 31/12/04: £12,830.15
Mortgage loan: £56,250
Monthly life assurance premium: £83.12
Basic benefit: £17,213
Maturity date: 23/10/2012
Projected final (Mar 2005)
3.75% - £37,500
4.5% - £39,300
5.25% - £41,200
Any help appreciated
First the good news:
Phoenix have just sent a letter saying that they're upholding the complaint - woohoo! They're offering £3,155.34 in compensation.
Now the headache:
Phoenix are offering 2 choices - accept the compensation and keep the policy, or accept the compensation and surrender the endowment.
What to do?
The endowment is my dad's, and thanks to MSE I managed to get my head around endowments enough to find grounds for complaint for compensation, but I don't understand how to calculate whether or not it's more or less benefitial to surrender the policy.
The figures:
Policy: Homebuyers Economy G Plan with Royal Life
Surrender value (14/06/06): £27,694.00
Total bonus earned to 31/12/04: £12,830.15
Mortgage loan: £56,250
Monthly life assurance premium: £83.12
Basic benefit: £17,213
Maturity date: 23/10/2012
Projected final (Mar 2005)
3.75% - £37,500
4.5% - £39,300
5.25% - £41,200
Any help appreciated
0
Comments
-
Whilst we cannot make any recommendation to keep or surrender plans as that is regulated advice, I wouldnt keep that one
You currently have a get out clause at no cost due to the redress.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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