Endowment Plan

awsome

I have recently re-mortgaged, switching from an Endowment Mortgage to a Repayment Mortgage.

I have kept up the repayments on the endowment policy, which has got about 10 years to run, so at the end of its term, I will have a lump sum of money at my disposal.

I have 2 questions.

1. What is the position as far as tax is concerned, when the policy matures?

2. Would I be better off stopping the payments to the endowment policy and investing my money in some other type of scheme, mini ISA etc.?

Any advice would be greatly appreciated.
???

dunstonh

1. What is the position as far as tax is concerned, when the policy matures?

There would be no tax liability on the maturity. Surrender is a chargeable event though and can lead to a tax liability.

2. Would I be better off stopping the payments to the endowment policy and investing my money in some other type of scheme, mini ISA etc.?

Depends on your tax situation and the term of the policy, the type of endowment, the funds invested in and those available, the requirement for life cover/critical illness or not, if with profits: the bonus gained so far and the guaranteed sum assured, the difference between current value & surrender value and any ongoing charges.