Selling PRU endowment - questions...

Devros

I've a With Profits endowment with the PRU, originally a Scot Am policy, begun in 1990, due to mature in 2015. I'm currently 37.

It was never intended to pay off a mortgage. I pay £23 per month.

Latest statement is as follows:

Minimum death cover £15,447
Amount of benefit £5330
Existing bonus £2325.36
New declared bonus £77.52

Total bonuses and benefits £7732.88

My questions are:

1. What is likely to be the surrender value?
2. In obtaining a surrender value, what questions do I need to ask the Pru?
3. Is it worth selling?
4. Any idea what I'd be offered for it?

I appreciate that 1 and 4 are sort of length of string questions, but I'm trying to get an idea of whether it's worth selling or keeping.

Thanks,

Simon.

EdInvestor

Just ring up and ask them for the surrender value, it's not a state secret

After you've done that, contact these people for a quote on the value for sale:

https://www.apmm.org

dunstonh

Scot Am plans are probably the 2nd strongest out there. Last year 95% of Scot Am policies maturing paid a surplus (average £2,200) and this year 96% have (average £2,600). This is despite amber warnings being sent to many of these people just 12 months earlier.

Your endowment may be obsolete by modern standards but if you find the penalty on surrender is too high, then you should be comforted that staying put isnt such a bad option.

Devros

Some more questions...

Will I have to pay tax on any cash I receive if I surrender (i.e. will I need to declare it on my next self assesment)?

Presumably, selling it is probably better than surrendering it?

TIA,

Simon.

Devros

Hi,

Received a surrender value today of £6020 from the man at the Pru.

Q1: Why is it so much lower than the 'Total Bonuses and Benefits at 31/12/2005'?

Q2: Do I need to wait for the paper confirmation before going to https://www.apmm.co.uk?

Thanks,

Simon.

dunstonh

Q1: Why is it so much lower than the 'Total Bonuses and Benefits at 31/12/2005'?

Because the basic sum assured only exists in full if you hold it until maturity.

Q2: Do I need to wait for the paper confirmation before going to www.apmm.co.uk?

You can start the ball rolling.

Devros

Cheers,

Presumably, the £6020 is not taxable for income tax or capital gains?

Simon.

Devros

Just made application for valuation via apmm....

Simon

Froggitt

dunstonh wrote:

Scot Am plans are probably the 2nd strongest out there.

The projected shortfall on my ScotAm Endowment almost disappeared last year.

Devros

Been offered £6634 so far (firm offer).

Also received an offer to sell at auction.

Si.