Unit linked endowment plan - when to surrender?

Chickenhawk_2

We have a unit linked endowment which is due to mature in 2018, but no longer have need of it to repay a mortgage or for life assurance. We've been through all the possibilities and come to the conclusion that we want to surrender it to Legal & General, the plan provider. From the surrender values we've been given, it's clear that the amount we'll get is going up and down ... can anyone give me a bit of advice on anything in the market which will influence this? When I rang L&G this morning I queried what was meant by the surrender value was "not guaranteed" and was told that I was being given Friday's value, which might well change. I'd like to extract the maximum out of them, given that this wretched thing has been very bad value!!

holly_hobby

The SV of a unit linked endowment will be based upon the number of units & value of the underlying fund within which they are held.

As an asset backed investment the value of the funds are subject to change, which may occur on a daily basis. Accordingly the SV given by the provider may only be guaranteed till until close of business on the day of valuation.

You will be able to track the valuation yourself by contacting the lender, and asking for the current unit price for each fund you hold your own units in. (you then simply mulity the no of units by the value given, for each respective fund you participate in).

No tax on surrender if it is a qualifying policy (in simple terms has ran more than 10 yrs).

Performance of the fund will depend upon several factors, i.e the acutal choice of fund itself, the fund managers choice of mixed assets within the fund, the balance of the mix, and how well the underlying investments have performed generally - knowing the funds would help peeps give a general idea on how that particular area has/is performing generally.

Hope this helps

Holly