Should I cash in my Endowment..missed the compo window!

Jude_S_2

Does anyone know whether it is worth cashing in an Endowment? we have been paying into the Endowment for 18 years and it should have been worth £40,000 after 25yrs, however for what ever reason I missed the deadline for compensation as I hadn't realised I had received the 'red letter' so we were advised a number of years ago just to keep it going. Our short fall will be around £17,000 and at the moment the policy is worth around £13,000 (predicted between £22,000 - £26,000) final outcome but you never know. ?

hcb42

work out what you will pay in if you keep it, if it is more than what you will eventually get back, then not worth the risk.

holly_hobby

A justified endowment mis-selling complaint has nothing to do with recieveing a red letter - but is based on the policyholder not being aware of the risk basis of the contract, and that returns under the contracdt are not guaranteed - 2 completely different things. In fact a policyhoder could recieve a green letter and would still have a jusitified complaint, if they complained the basis of the policy was unsuitable to the risk profile.

Anyway, to your post - your current endowment is now acting as a savings vehicle, with the premium providing you with life cover, plus an element of invesment.

You need to consider that if you surrender the policy or make it "paid up" by ceasing premiums, you will lose the life cover element (which may be more costly to replace now that you are older), and if a with profits poilcy, you may also lose out on any possible terminal bonus payable at maturity, plus the addition of reversionary bonuses from now until then.

Its difficult to call, and really no one can make the decision for you - you have to look at the whether you want to (can afford to ) continue with premiums (remember part of them provide for life cover) - and possibly not see any real return, cease premiums altogether and leave the policy paid up until maturity, or take the money and run now instead ...

First thing to do is obtain a current surrender value from your provider - then make your evaluations from there ....

Hope this helps

Holly