Should I sell my Endowment?

buzzandcindy

Please help! I have a 25 year £15,000 endowment, which has 9½ years left, and it not against my mortgage. I have been told that I will have a shortfall of 7-8 thousand pounds.

I am out of time to make a claim. Is it worth selling it to, save my £20.45 per month payment and get back the money?

I am becoming self-employed so anything I can prevent paying a month would be of great help initially.

Thanks in anticipation.

EdInvestor

Post some info about it

Provider's name
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Have you paid off your mortgage?If not, tell us the interest rate.

buzzandcindy

Thanks for reply EdInvestor.

Provider's name - Alba Life
Guaranteed sum assured - £5,126
Declared bonuses - £1,496.79 on maturity
Surrender value - Not sure
Monthly premium - £20.45
Maturity date - 24/05/2016
Maturity forecasts -
3% - Projected final amount - £7,620 Projected Shortfall £7,380
3.5% - Projected final amount - £7,920 Projected Shortfall £7,080
4.5% - Projected final amount - £8,620 Projected Shortfall £6,380

Just remortgaged to Nationwide for £73,300 over 30yrs at interest rate of 4.94% fixed for 2 years, with a view to paying more off sooner once business fully up and running.

EdInvestor

Ring them up and ask the S/V.

buzzandcindy

The surrender value is £3,149.72.

Thanks in anticipation, hope this is all the info you need.

EdInvestor

buzzandcindy wrote:

Maturity forecasts -
3% - Projected final amount - £7,620 Projected Shortfall £7,380
3.5% - Projected final amount - £7,920 Projected Shortfall £7,080
4.5% - Projected final amount - £8,620 Projected Shortfall £6,380

If you surrendered it now and used the lump sum to reduce the mortgage, also increasing the mortgage payment by the amount of the endowment premium, then you should end up with 7,572 at maturity, which is lower than their lowest projection.

At maturity you are guaranteed to get 6,622 if you just keep paying in, regardless of what happens in the markets.Plus the policy includes free life cover.

IMHO you should keep this policy.

yuda20

I have a relationship with a company how will get you a no obligation quote for your policy, it may help you decide whether its worth selling.

Email me for more info.