Endowment advice?

jimjames

The other option to cashing in is selling it. This could well yield more than the cash in value.

Does mean that someone else has an interest on your life assurance though.

On the whole there are much better ways of saving money over a 25 year term than endowments which is why they are now very scarce!

fedresnut

Funnily enough I am also in the same boat as the OP.

I thought I'd see what the 'cash-it-in sites' had to say and they seem a bit sniffy about it. Mine is a Friends Provident, started in 1993 due to mature in 2018 and it's 1/3rd Managed and 2/3rds With Profit.

Does anyone have any advice as to whether it's the sort of policy which would be of interest to the third party companies or would I be better to take whatever FP have to offer?

Many thanks for any help.

dunstonh

fedresnut wrote: »

Funnily enough I am also in the same boat as the OP.

I thought I'd see what the 'cash-it-in sites' had to say and they seem a bit sniffy about it. Mine is a Friends Provident, started in 1993 due to mature in 2018 and it's 1/3rd Managed and 2/3rds With Profit.

Does anyone have any advice as to whether it's the sort of policy which would be of interest to the third party companies or would I be better to take whatever FP have to offer?

Many thanks for any help.

Its unit linked so you cant sell it.

fedresnut

I appreciate your response.

whitmore_fan

Thanks for the replies. My endownment is a with profits variety. I did sit down a look at the figures a while ago and came to the view that at the lowest estimate on maturity I would still get more than I put in. But I was told that a lot of the value comes from the latter years of the endownment, if not during the last year. I still have 8-9 years to go.

I supose the only real resolutio it to look into the cash-in value and the amount I have already paid.........

Thanks
Ian

Gorgeous_George

The answer is to look at the estimates (which could be higher or lower than the final payout - the clue is the word 'estimates') and decide what you think the policy will achieve.

Then, you can work out what you would save if you surrendered the policy and overpaid your mortgage (or saved elsewhere). If your estimate of the final policy value (with all the risk that it carries) is better than surrendering and overpaying your mortgage, stick with it. I would surrender if it was my policy.

You must make your own mind up.

GG

rogercruse

rogercruse wrote: »

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

Just a quick post to provide an update of my situation. My endowment company has provided latest estimates for my policy

Surrender Value: £32932
Maturity Value (3.25%): £34800
Premium for one year: £694
Difference: £1174

So, I only lose about £1174 if I cash in now (I say "about" as these are estimates and each month the calculation & estimates change).

Fortunately, I knew from previous letters from them that the endowment wouldn't cover the original value and I had changed to a repayment mortgage and have been mortgage free since 2007.

Now to decide how to "invest" the money...