Endowment advice?

whitmore_fan

Hi everyone, sorry for another Endowment question!!

I took out an Endowment policy in 1994 with an interest only mortgage. I sold the property many years ago and since then I have always had a repayment mortgage but retained my original Endowment as a savings plan.

I have been receiving a lot of Shortfall Warnings from Friends Prov but as I don't need the Endowment to cover my mortage I haven't been worrying too much, I see it as a savings plan? However I am starting to wonder whether it's worth cashing in? I pay £61'ish per month and it was originally going to cover £45K mortgage. At the moment it looks like I might only get £30K or less. My question is should I cash it, sell it or keep it? I can easily afford the £61 per month.

Thanks
Ian

tryfan

Interesting post, I have almost thee same situation. I had a £42k endowmment with std life, no longer conncted to a mortgage, just being paid with the money from my BTL. started it in about 92nand been told to expect some £30k when it matures. almost the same figures as the OP. if anyone has any advice please speak up

Cheers

rogercruse

Me too. My original £45k endowment matures in a year.

garethshaw

My situation is the same with almost the same numbers. I decided to keep the endowment for two reasons;
1. Savings
2. Life assurance

Gareth

maninthestreet

What is the cash-in value (including MVR)?

Gorgeous_George

I don't see them as savings plans as you will probably lose money. The life insurance benefits are marginal if you consider that this only provides cover to the value of the policy MINUS the surrender value (i.e., if it covers you for £50K but is worth £40k if surrendered the lost life insurance of cashing in is just £10K).

My thread from 2007/8 tracked my decision making process (link).

There may be a mortgage promise attached to your endowments but i don't know if this has any value (if you don't have the policy attached to a mortgage).

With the likely doom and gloom over the coming months/years, I'd prefer to have my cash in my control. It is far too easy for SL and FP etc., to steal your money to pay their shareholders.

I recommend that you seek financial advice if necessary (and treat it as advice) then make your own mind up and do what you think is right from a position of knowledge. I would surrender the policies (and I wouldn't bother with the advice).

GG

newleaf

Interesting thread. I'm in a similar position with a Legal &General endowment policy which used to be linked to a mortgage on my old house. It was meant to cover a £35.5K mortgage, but I reckon I'll be lucky to see £20K. It's due to mature in January 2015, which should coincide with my retirement. I last sought advice around 2005 and was persuaded to keep it, but I cashed in the two smaller ones I had with Liverpool Victoria.

Dick_here

Gorgeous_George wrote: »

I don't see them as savings plans as you will probably lose money.

Where's your evidence for this sweeping assumption, Georgie ?

rrf494g

sorry to say

there's no substitute for doing the sums. How much would I get for it if cashed in? How much more will I pay if I keep going? What is the likely value when fully paid up? I would only trust the lowest estimate now being given to you, for the latter value.

tryfan

Thanks all, good to know I',m not the only one in this position and interesting to see others with very samilar policies. I'm going to leave as is for the time being, as i said my BTL pais for it, but review when I next get a statement

Tryfan

Gorgeous_George

!!!!!!_here wrote: »

Where's your evidence for this sweeping assumption, Georgie ?

It is my own opinion based on (limited) experience and my view of what is in store over the next few years. I could be wrong and suggested that people should seek professional advice.

My advice is free and worth every penny.

GG