Aviva Endowment - Advice of whether to Surrender - Completely lost

Dirk__2

Evening all

I am looking for some help with my Aviva Endowment and whether it is worth keeping it on or surrendering it

I have Paid £65.00 per month since Feb 1999 (total paid £8645.00), received a letter today from Aviva
with the following info -

Regular bonus last year - 4% of sum assured
- 5.50% of all previous declared bonuses
Resultant bonus was £ 675.80


Regular bonus this year - 3.60% of sum assured
- 5.10% of all previous declared bonuses
Resultant bonus was £ 645.17

Sum Assured £ 14538.00 (is this sum we are hoping to reach, as this endowment used to be offset against our £40000.00 mortgage)


Bonuses previously £ 2388.30

New Bonus £ 645.17

Total Bonus £ 3033.47


The letter stated that a surrender valve would be around £ 9520.84

I have a couple of questions that hopefully someone can help with -

As this endowment is no longer offset against a mortgage, Would it be worth keeping ?

If it is not worth keeping I was thinking of surrendering and paying the surrender value into my mortgage and also increasing my monthly mortgage repayment by the £65.00, which I think will end up saving me a lot more money on interest.

If it is worth keeping, would I be best increasing the monthly payment

dunstonh

What is the mortgage promise value (MEP)?

That can often be the difference between keep or dump with Aviva.
What are the projections

Dirk__2

I will give Aviva a call in the morning and ask the MEP

Thanks for the response

the_don_one

If you decide to cash it in, you may get more on the TEP market (traded endowment policies). Go onto Google type in TEP market put your info into a few of the sites. They will come back to you with an offer if they can beat the offer Aviva have made you. I have decided to cash in my endowment under similar circumstances. Although I only got about 300 pounds more than my surrender value doing this, your policy may do better.

dirk_

Just looking on-line and have came across a company called 'Absolute Assigned Policies'

On there site I can print off a letter instructing Aviva to give them any info relating to my Endowment so they can make me an offer.

Is this a safe thing to do ?,

the_don_one

I am selling mine to AAP, I am currently going through the sale with AAP at the moment. They seem o.k. so far. I filled in my details online which is where their quote info came from.
I was put onto the TEP market by my insurers Phoenix. They suggested that I may better their offer by going through a company like AAP. I gave it a whirl. I haven't completed the sale yet but it should be complete in about four weeks.

dirk_

Hey, Thanks for the info.

:T

dirk_

Well, I have figured out the info needed to submit a online offer

I have put a requst in with AAP & LSA

dunstonh - By Morgage Promise Value - Do you mean what was the total mortgage the Endowment was offset against, as this was £40000.00

dunstonh

By Morgage Promise Value - Do you mean what was the total mortgage the Endowment was offset against, as this was £40000.00

No.

In 2001 Aviva agreed to take the shortfall at the middle rate and promise to pay that difference on top of your maturity value if you fell short (to the maximum of the target amount). This figure was capped in 2003/4 but still exists and is fully funded. You lose this amount on surrender and if you sell it, the person/firm you sell it to gets it.

The figure is known as the mortgage promise value or MEP for short. Look at your 2001 statement or 2003/4 statements to see what your capped figure is.

dirk_

Thanks for the help dunstonh

I have had a look at my 04/2003 Yearly Statement but can only see the following headers

Current Monthly Payments £ 61.68

Value on Death £ 38157.00

Minimum Life Insurance Amount £ 14538.00

Bonus added on 31 Dec 2002 £ 1668.00

Regular bonus from previous year £ 1066.20

Total Regular Bonus £ £ 1233.00


I will have to give Aviva a call in the morning and ask them for the mortgage promise value

dirk_

Hi Guys

Just called Aviva and have been give the following info

Mortgage Promise Value is £ 5670.00

Projections on the account are
4% £ 27800.00
6% £ 34700.00
8% £ 43500.00

Hope that helps