Unit linked life plan surrender.

wayne42

We have a Barclays unit linked "Maximum cover plan" bought in 1992.
Units 507.8305 Price 10.2080 Value 5,694. We seemed to have lost around £4,000 on the sum assured which was originally around £62,000.
Our premium is £35.84 a month.
We were thinking about surrendering this but thought I would check here first in case we could do better selling it.. I called one company today and they say that they do not deal in unit linked policies.
From memory , this policy is a "whole of life"??
We were thinking of surrendering it and buying a 25 year term policy which looks to be much cheaper in terms of monthly payments.
The unit linked policy was taken out on the advice of a Barclays agent when we were applying for our Barclays mortgage back in 92.
We are no longer home owners.
Is this a good idea?
Any advice would be appreciated.

jasonking

I am certain that you will not find a company that will be interested in buying this type of plan, it is only with profits plans that are marketable.

This type of plan usually has a sting in the tail as at some stage you are faced with either an increase in premium (to maintain cover level) or a reduction in cover (to maintain premium level). This type of plan is not so popular these days as term plans offer fixed premiums and cover for usually less money.

Replacing existing cover is fraught with pitfalls though, you need to make sure you make the right decision as it is not something you can fix later if you dont...seek advice from a qualified IFA.