Royal Liver Endowment advice needed

horizon · 24 April 2011 at 6:29PM

Hi

I have an endowment with Royal Liver. It is £40 per month for 24 years, with 14 years to go. It's not linked to a mortgage.

I have had serious concerns that it's going to return far less than I have paid in for a while now, but have waited until this week, as my wife had one for £20 per month for 10 years, which just matured.

She paid in £2400, and got back £2149. There was no final bonus or anything else added. So a loss of £351 over the course of 10 years.

Royal Liver have sent out bonus notices to us in the last two years, citing financial pressures etc, and awarded bonuses of 0%:(

I now need to consider what to do with mine.
Paid in so far = £4800
14 years left to pay = £6720
24 Year total = £11520
Sum assusred is £10,354

I asked them for a surrender value, which is £2731.90
If I take this it will equal a £2068.10 loss.

So do I carry on, and potentially throw good money after bad, or cut my losses and run ?
The £40 per month could go into a savings account ? There are a few about, with 3% interest rates.

Any advice would be much appreciated.
I realise you need a crystal ball to know how much this endowment could grow or shrink in the next 14 years.

TIA
Horizon

kingstreet · 25 April 2011 at 12:42AM

Royal Liver is a mutually-owned friendly society and it is currently being taken over by another mutual, Royal London. I suggest you defer any decision on the future of your policy until after the merger has taken place as you may find a special bonus is paid if it mirrors similar historic deals.