what to do

bill_rand

Hi folks after some advice here. At the moment i have no money in the bank or work. I have looked at a low cost endowment with profits i have running, with two years left to go. Im thinking of surrendering or selling on. Just to get some funds

Details are

Basic sum assured £15308
Total bonus to date £12860

It was with Pioneer Mutual now Phoenix

Projected outcome in 2014 £39400>41200>43000

However i have just contacted them for a surrender value and as of today they say its £44000!

Can this be right?

And if so what would be the best thing to do, ie does the surrender value indicate a much higher dividend on maturity than the updates are showing.

Also if i sell on ive heard that they could pay up to 30% more than the surrender value is this correct.

Any advice most welcome as im pulling my hair out due to finances and lack of work, thanks all

bill_rand

Anyone any ideas?

dimbo61

So you have no money and no work?
Do you own a property with an interest only mortgage ? How are you going to repay the mortgage ?
If you cash in the endowment and get back £44,000 you will have to live off that money for a long time as you will have far too much in the bank to qualify for benefits !!!
We know very little from the info you have given so far and what your current situation is !

McKneff

Is there a mortgage attached to this endowment.

bill_rand

Hi there is no mortgage on the policy, i own my house outright it was more of a savings thing. The main advice im after is whether its worth selling, surrendering or seeing it through for the next 2 years, although as i say i really need the cash now.

The surrender value quoted over the phone seems very high to me, i even rang back and asked again it must be a computer generated figure as it came back the same figure £44000, but ive asked them to work it out manually and let me know in writing.

I suppose im really after advice on what terminal bonus payments are being paid at the moment and how much interest these sort of policies are generating so i can try and decide whether to try and get by and keep the policy going or cut and run

McKneff

It does seem a lot, I would get it in writing to be honest, also, dont forget that their is life insurance attached to these policiies.

Terminal bonuses now are irrelevant to what terminal bonuses in 2 years time.

bill_rand

I guess im looking for advice as to whether to keep it going for the next 2 years against selling/surrendering now ie the best overall feasible monetary gain best scenario ......... though i may well have to sell soon to get some money in the coffers. Anyone know if the end bonus are generally heading up or down?

bill_rand

any thought?

mgdavid

my crystal ball is as foggy as yours! Simplistically ask yourself if you think that European and western financial instability and uncertainty will be less in 2 years time than now; if 'yes' then hang on to it as the bonus trend will be upwards. If No then cash it in. We don't know enough to help you decide - age, health, future plans, income, debts, needs vs. wants, etc etc. If the difference is only going to be a thou or two then balance that against potential cost to health and well-being through worry and hassle etc.