Endownment Policies

ALADINSANE

I Have 2 Endownment Policies Runining To Pay Of My Mortgage.
3 Years And 6 Years Left To Run. They Wont Reach There Target
Shuold I Cash Them In

Susan_C_4

Are they currently paying a reversionary bonus each year on to the policy? There will probably be a terminal bonus due at the end of the term too, although this is not guaranteed.

You will need to look into this further and weigh up all the pros and cons. I.e. how much is the shortfall, how much is the surrender value versus current value etc.

I had an endowment which was not on target and which hadn't paid a bonus for two years and I was paying £78 a month for the policy and so I figured that this money would be better spent being paid off my mortgage each month. Rather than cash in the policy I sold it for a higher sum and then paid this money off my mortgage too and converted the whole mortgage to repayment. The end result is that we are paying slightly more each month in terms of mortage payment but we know the mortgage will definitely be paid off at the end of the term, we are also overpaying the mortgage each month and hence we are reducing the term. This worked for me but will not be ideal for everyone.

Maybe think about keeping one policy and cashing one in?

ALADINSANE

Thanks For Your Reply
I Have Been Receiving Bonuses Each Year
The Shortfall Is Substanial ,so I Have Opened Up An Isa To Cover It.
Is Ther Places Where You Can Sell The Polices For A Greater Value

A_Nice_Englishman

Why are you putting the money to cover the shortfall into an ISA? Wouldn't it be better to pay it straight off the mortgage?

EdInvestor

Post some details about the policies so we can have a look

Provider
Guaranteed sum assured
Declared bonuses
Surrender value ( ring up and ask)
Maturity date
Monthly premium
Maturity projections (ask for updated ones)