endowments v life assurance

janeyrob

our endowment policy will probably not pay out what is promised and as the mortgage only has 4 yrs to go, i was wondering whether to cash in the endowment, pay this off mortgage owing and take out mortgage protection(which would be cheaper than endowment), for the remainder of the mortgage term. is this wise, or should we leave it as is?

Annisele

I think that "endowments v life assurance" is a bit of an odd title - endowments are life assurance.

I don't know whether you should cash in your endowment - I've nowhere near enough information about you to advise, even if I was authorised to do so (which I'm not). Some of the things you might want to think about are:

• Does your policy provider give any kind of 'mortgage promise' if you keep the endowment to the end of its term?
• Are there any early repayment charges on your mortgage?
• Can you afford to keep convert part of your mortgage to repayment, and continue with the endowment?
• Do you actually need life assurance? (I'm not trying to get you to cancel it if you need it, just pointing out that not everybody does).
• If you do need the life assurance, has your health changed since you took out the endowment such that life cover would be difficult to obtain now?
• Do you have any other savings you could put towards the endowment shortfall?
• Can you overpay your mortgage (without officially converting any part of it to repayment)?

McKneff

Could you ask if you can extend your mortgage.
Or take another one out wihen the endowment pays out.
Will there be a final bonus on the endowment which yu will miss out on if you sell it now.

shortchanged_2

janeyrob wrote: »

our endowment policy will probably not pay out what is promised and as the mortgage only has 4 yrs to go, i was wondering whether to cash in the endowment, pay this off mortgage owing and take out mortgage protection(which would be cheaper than endowment), for the remainder of the mortgage term. is this wise, or should we leave it as is?

I don't really understand what you think you will gain by taking out mortgage protection? If it is PPI you are referring to this is not there to pay off your capital at the end.