Endowment - Time to Cash In?

dinofabio · 30 March 2011 at 9:31AM

Hi All

I've got a couple of endowments to that are due for maturity in 18 months and 3 years respectively (paying out £10K and £25K).

I've had a valuation done by the endowment company this week and was told that if I surrendered them now, both policies would pay slightly over the original target amount.

I have read in the past that some policies that were on track with a few months to go, have suddenly nose-dived in the last few months leaving them well short of the target amount. Is this right??

I'm thinking of cashing them in. After all, they will have paid out the full target amount as intended.

Would I be missing out on the terminal bonus?

CloudCuckooLand · 30 March 2011 at 11:12AM

The market can dive any time - or rise above your expectations. Another 18/36 months of recovery from recession could be positive. Another earthquake, or fall-out (not meant as a pun) from the effects yet to be felt of the recent one, could be negative.

Toss a coin ?

"Would I be missing out on the terminal bonus?"

Yes.

Whether that matters depends on the company/product specifics. Some terminal bonuses are almost an insult. Others well worth holding out for...