Cash in or not to cash in?

MABAN

Hi, I have three endowment policies; 2 of them have 4 years remaining with C&M and the other 12 years with SL....am i better just to cash in and use the money to lower my mortgage - which is now capital and interest so endowments not required. Then using the usual monthly endowment premiums to start a new savings plan?

Annisele

Very hard to say without figures (and I can't give advice anyway).

Some things to think about:

• Do you need the life cover provided by the policies? If so, can you get it elsewhere if you cash them in?
• Is there any kind of mortgage promise attached to the policies?
• Is there a penalty for paying lump sums off your mortgage?
• Can you make overpayments to your mortgage (rather than setting up separate savings plans with the endowment premiums)?
• Are you happy with the funds the policies are invested in?
• (If the policies are conventional with-profits) can you sell them elsewhere for more than the insurance company will give you?