borrow against unit linked endowement

nereus

hi ive got two unit linked endowements , that are on track but im now between jobs and need money fast , i really dont want to cash one in with only eight years to go as they will double in that time , does any one lend against unit linked endowements ? once back in work i could clear the loan but for now im really up against it , help please

Thrugelmir

nereus wrote: »

i really dont want to cash one in with only eight years to go as they will double in that time

That's a highly optimistic assumption.

kingstreet

Ring the provider and ask if they do "policy loans."

When I worked at Sun Alliance donkeys years ago, we did, but I'm not sure if they are still available.

maninthestreet

Double in eight years time? That would need almost a 10% p.a return for the next 8 years!

nereus

thanks for that but no they dont , one has a cash in value of almost 14k original target was only 15.5k but nobody seems to want to lend against it , annoying as all the costs have been paid in the early years and there projecting a final sum of over 29k that maybe optimistic in eight years but im suprised they wont touch it , cheers for trying anyway

nereus

i am still paying £90 a month and is index linked ?

dunstonh

nereus wrote: »

i am still paying £90 a month and is index linked ?

When you say index linked, do you mean its in index linked gilts? in which case it will be lucky to get 2% a year.

If you mean index linked premiums then it suggests you dont have an endowment as that would break qualifying rules which require at least 10 years of level premiums.

nereus

i dont know the jargon but the premiums go up each year , and i reduced the life cover to a minimum years ago to get the best yeald / pay out at the end lol

Thrugelmir

nereus wrote: »

thanks for that but no they dont , one has a cash in value of almost 14k original target was only 15.5k but nobody seems to want to lend against it , annoying as all the costs have been paid in the early years and there projecting a final sum of over 29k

Over the next 8 years at a £90 month contribution. That amounts to a further £8,640 of money invested. Added to the £14k current value . Means that total investment growth is currently projected to amount to £6,360. Far short of a 100% return.

In fact you existing £14k would gain that amount at a 5% compound return over 8 years. Without contributing another £8k.

dunstonh

nereus wrote: »

i dont know the jargon but the premiums go up each year , and i reduced the life cover to a minimum years ago to get the best yeald / pay out at the end lol

That makes it non-qualifying for tax purposes then which sees it potentially liable for tax on maturity.

kingstreet

Sounds like a unit-linked whole life policy to me. As Dunston says, you've a potential tax liability at maturity as it will be non-qualifying.