Endowment query

Good_Money

Due to a problem with setting up a new direct debit my endowment premiums have not been paid for a few months.

Aviva (who the endowment is with) have now said they cannot apply any more premiums and that my policy has become "paid up"

It was due to finish in 2018.

What options do I have? Can I surrender the policy as I do not really need the life cover as I am covered by other means.

kingstreet

If you leave it paid-up it will continue to grow, albeit at a slower rate than if you were still paying.

If the life cover is continuing, that will be paid for from the paid-up value, so you could find your investment falling to facilitate something you suggest you no longer need.

Given the circumstances, I suggest you contact them to ask them for a surrender value. An ISA may now be a better home for your cash.

dunstonh

Aviva have an endowment mortgage promise on many of their endowments. This can range from a few hundred pounds to tens of thousands. If the policy is made paid up or surrendered, you lose that MEP value.

I would ask them what the MEP value is (or check your 2001 statement and 2003 or 2004 statements as they show the MEP value). Then ask them that if you can reinstate the policy. Normally you can within 12 months as long as you make up the back payments and possibly a declaration of health.

Good_Money

When the endowment was started it was a Provident Mutual policy.
Would this still have this Aviva MEP?

dunstonh

I cant remember if PM ones are included. I wouldnt want to guess. If you have old statements, check the 2001 statement. If you don't then phone Aviva and ask them if yours has the mortgage endowment promise and if it does, how much is it. Be wary, quite a few people have posted in the past that they were told on the phone there wasnt one or the person on the phone didnt know what was being talked about only to find out later there was one.