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Surrender or Continue until Maturity
chris1955
Posts: 20 Forumite
I have 4 x endowment policies each for a Sum Assured of £1151 taken out with POIS in 1972. These are due to mature in September 2012. The current monthly premium is £1.31 each.
On the last Bonus Certificate (2009) the Sum Assured plus revisionary bonus was £2853 each. The current surrender value of each poicy is approximately £5500. My question that I hope people can advise on is should I surrender the policies now or keep them running until maturity when the will be eligible for a Terminal Bonus although obviously that's not guaranteed?
On the last Bonus Certificate (2009) the Sum Assured plus revisionary bonus was £2853 each. The current surrender value of each poicy is approximately £5500. My question that I hope people can advise on is should I surrender the policies now or keep them running until maturity when the will be eligible for a Terminal Bonus although obviously that's not guaranteed?
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No idea. Do you need the money? Are they costing you a lot per month? Are they on target? What are the expected values at termination? Are Terminal Bonuses currently being applied to policies? And so on.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Between now and September 2012, you'll pay 18 x £5.24 in premiums, £94.32. So there has to be only an increase of £100 in the difference between the surrender value and maturity value to make keeping them full-term the most attractive option.
Is there any terminal bonus included in the surrender values? If there isn't, keeping them on is going to be a better option.
I guess it comes down to a simple question. Is the £5 a month going to go into something better?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
For the sake of £5 pm the potential of a terminal bonus has to be worth keeping?
Let us know next year what you have done!I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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