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Life Assurance What should I do?
tele951
Posts: 86 Forumite
I have two life assurance policys.
My question is are they worth keeping?
I have been paying one for 18 years it is a 22 year policy.
I have just telephoned the Royal london and they have said the surrender value is £13,125.I pay £40 per month for this policy.
The other policy I have been paying for 14 years,which is also a 22 year policy.The surrender value is £3,663.I pay £20 Per month.
Any advice would be appreciated.
My question is are they worth keeping?
I have been paying one for 18 years it is a 22 year policy.
I have just telephoned the Royal london and they have said the surrender value is £13,125.I pay £40 per month for this policy.
The other policy I have been paying for 14 years,which is also a 22 year policy.The surrender value is £3,663.I pay £20 Per month.
Any advice would be appreciated.
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Comments
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Are they do the job they were needed for?
If the need is still there, can they be replaced with something with better value?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If they are quoting a surrender value of £13,125 then I would suggest that the maturity value in 4 years is likely to be substantially more. As it stands the surrender value represents an interest rate of between 6% and 7% per annum over the term and thats tax free.
I cant think of ANY low risk investment that would pay you anything like that.
If you dont need the £40 then keep it going for the 4 years.
If you are determined to dump it then look at selling the policy rather than surrendering.I have retired from a career in Financial Services........Thank God. Any advice given may be as a result of senile dementia so dont take it too seriously.......
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When I took them out I just wanted a long term savings.
I do not want the money for anything in particular.
Thought that they would do better than they have.
Do you think they are worth keeping.0 -
Thank you for your reply.
What do you think about the smaller policy.0 -
The £20 policy does not appear to be showing anything like the profits of the larger one.
If it were me I would cash in that policy and put some of the cash into an easy access account for emergencies. I would put the balance of the proceeds into an ISA. You would be best getting advice from a local IFA about the funds to invest in after he/she has sussed out your attitude to risk/growth.
Sorry I can't go any deeper as I don't know your personal circumstances and its long past my bedtime.......:DI have retired from a career in Financial Services........Thank God. Any advice given may be as a result of senile dementia so dont take it too seriously.......0 -
It is impossible to make a recommendation without detailed information that is not possible via this board. You need advice from an IFA idealyI am a director of Torquil Clark Life Insurance (formerly Life Policies Direct), a specialist protection broker. Posts on this forum do not constitute or imply advice and are for discussion purposes only containing generic information. If you need individual guidance please seek advice from a suitably qualified, registered and authorised financial adviser0
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