Should I cash in my endowment policy?

jackieblack

I've got a small endowment policy, which has 4 years left to run.
The bonuses paid for the last few years have been rubbish, 0.25% -0.5%, and I accepted long ago that it'll probably only pay out about half of the amount it was 'supposed' to at the end of the term.

I undertand that it used to be that the final bonuses paid made quite a difference to the the final payout, but I assume that's not so true now.
I'm trying to work out whether its worth carrying it on for the remaining 4 years, and paying another £1100+ in premiums, or cashing it in now.

The 'minimum we will pay on maturity' figure on the statement only sems to increase by about £50 each year, but I don't know if this is the figure I should be judging this on (?)

Any advice, please?

(The policy is with Standard Life, in case that makes any difference)

jackieblack

Can anyone more knowledgable than I offer any advice please?

dunstonh

I undertand that it used to be that the final bonuses paid made quite a difference to the the final payout, but I assume that's not so true now.

That hasnt changed with regards to conventional with profits plans. However, final bonuses are subject to investment returns.

The policy is with Standard Life, in case that makes any difference

It does as it indicates the quality of the with profits funds (its not the best, not the worst). And it also means you will have a mortgage endowment promise value which is added on maturity. That is no paid if you surrender. That figure is vital. What is it?