Cashing in an endowment

kopite323

Hi All

I am coming to the end of a 5 year fixed mortgage deal and am re structuring my finances. I am pretty miffed that i have given the bank approx £38K in payments and my capital has only been reduced by £10K which i know is the norm but i dont think its right! Anyway....

I currently have an endowment with the CIS, My parents started it for me in 1993, and i took over the payments a year later. It is for 25 years and the Basic sum assured is £5000. It is worth £6629 at the moment with the annual bonus' it receives.
It only makes £28 a year in bonus but it does state that
" When your policy becomes a claim you might get more than the minimum amount, we would do this by adding a final bonus to your policy, although this is not garenteed."
Has anyone had experience of one of these style endowments before? (It is nothing to do with a mortgage its a sort of savings investment which back then i could have turned into a mortgage if i wanted to.)
Would it be worth while cashing it in as it is not making that much money?

I currently owe about £6K on a loan i took out. Which this would cover. Then the £200 a month i pay off the loan and the £20 a month i pay into this could go as an overpayment to my mortgage, with the other £200 i get from a small business i run on a part time basis. So i can overpay my mortgage by £420 a month.

Or option B is to leave the Endowment alone if its going to make a significant amount of money come the final bonus and use the money i have in an ISA to pay off the loan. The only down side to that is the fact it has recovered quite well and made over 10% this year with the reinvestment.

kopite323

So i have just spoke to the Co-op and the surrender value is worth £5400, I have asked for a forecast for the final sum assured but this will take 10 days to come.
Any guesses to how much it will be worth in another 5 years??