Maturing Endowment Policy, what to do?

moneydummy_3

Hello All, first post on this site.

I have a Friends Provident Endowment Policy which ends it's 25 year term soon. Value of the policy is as follows, according to FP.

Sum assured £7500
Declared Bonus £7800
Final Bonus £4300

Total around £19700

I believe the final bonus rate is around 52% of the declared bonuses. My question is do I have to accept this? Are there any other options?

Tax? Are there any tax implications? I'm a standard rate tax payer.

dunstonh

My question is do I have to accept this?

Yes. Although you can gift it to someone else if you dont want it.

Tax? Are there any tax implications? I'm a standard rate tax payer.

As long as it is a qualifying endowment policy then there will be no further tax to pay.

moneydummy_3

dunstonh wrote: »

Yes. Although you can gift it to someone else if you dont want it.



As long as it is a qualifying endowment policy then there will be no further tax to pay.

So do you know if the final bonus rate, set by FP, is finite?

Tax. I was hoping this was the case, it is a with profits plan, taken out with a mortgage, mortgage is paid off already.

dunstonh

So do you know if the final bonus rate, set by FP, is finite?

Yes it is. It is not something you can haggle. Whatever the value is on day of maturity, that is what you get.

moneydummy_3

dunstonh wrote: »

Yes it is. It is not something you can haggle. Whatever the value is on day of maturity, that is what you get.

Thanks, this is confirming what I have already heard.

I don't know if a 52% final bonus rate is good or bad, I know FP were paying 130%+ in the past.