endowment, worth keeping?

itwgraham

Hi
i have an endowment that has 2 years to run. I don't need it to repay the mortgage. I pay £33 per month, total bonus is around £6000 so far, guaranteed cash benefit is 7583 and the life cover is 22500. Is it worth hanging on for the terminal bonus and the benefit of a bit of life cover or selling it? Has anyone any ideas of levels of terminal bonuses?
Many thanks
Graham

holly_hobby

This is only a decision you can make

The level of terminal bonus can differ widely between providers, as it is the wp surplus of that yr, which is applied to maturing policies as a TB.

So points to always remember with TBs is that ...
a) the addition of one of at maturity is never guranteed, and indeed may not be applied at all - its at the discretion of the provider
b) one providers payout isn't necessarily representative of anothers.

No one can say definitavely what you should do, as its a personal choice - if it were me, I would try and avoid encashment - unless I had a fairly good idea I was throwing good cash after bad & didn't need the benefit of life cover.

To that end, you appear to have recd a current valuation - so I would re-contact the provider and maybe ask them what the recent TBs have been on maturing WP contracts - including those paid this yr. This of course doesn't gte that you will get the same, but will give a general idea of what you may be in line for ... unfortunately none of us have crystal ball so its hard to actually tell you to encash now, and be absolutely confident that you will not forfeit or suffer a financial loss in doing so.

As an alternative to encashment - what about selling the endowment, google for providers who accept this type of business, the value will ordinarilly be more than you would receive if you surrendered, but is dependant on the provider, when you effect the contract, premium level, recd emvs, and length of time to maturity.

Hope this is of some help ... or not !!! (sorry I couldn't tell you which way to jump )

Holly