Selling an endowment

Thrupnybit

Looking at selling or surrendering my endowment and wondered if anyone had any recommendations for companies who buy endowments. It's a with profits, ex Scottish Provident, just over 3 years to run, surrender value very slightly more than sum guaranteed + bonuses (not had any for years).

I know there could be a terminal bonus but shortfall on the glorious sum 'promised' in 1990 is likely to be at least 12K. Planning to use the cash generated to pay off a chunk of mortgage and, at current interest rates , I reckon I would save just over £3000, factoring in a new life policy cost.

holly_hobby

Think the TEP market is dead.

If you surrender, and don't change the residual amount of os mortgage to a C&I basis - you need to consider what your plans are for repaying it at the date of redemption ?

Surrendering, loss of life cover, forfeit of poss TB - also check if there is any mge gte aspect to the policy you may be losing out on.

Don't see any real value to making it paid up i.e ceasing prems and just leaving it in situ.

Hope this helps

Holly

Thrupnybit

holly_hobby wrote: »

Surrendering, loss of life cover, forfeit of poss TB - also check if there is any mge gte aspect to the policy you may be losing out on.

Not sure what is meant by mge gte? Have already shifted part of mortgage to repayment + rest covered by OH's endowment (at realistic amount).

Thanks

holly_hobby

Sorry ... Mortgage guarantee

Give your provider a call and ask if there are any additional benefits to the policy (apart from payment on death of the target sum) that you need to consider before surrendering ?

H x

Thrugelmir

holly_hobby wrote: »

Don't see any real value to making it paid up i.e ceasing prems and just leaving it in situ.

Terminal bonus may provide an attractive return with only 3 years for the policy to run.

holly_hobby

Not gted, and in the meantime they are still paying mge interest on the same sum over the same period.

If it wasn't going to be used to reduce mge borrowings, I would normally have suggested that.

H x

Thrupnybit

Thanks for replies. I was going to keep going, having paid for 22 years nearly, for all the reasons you suggest. But the surrender value was quite a bit more than the last time I asked and the ability to reduce our mortgage and finance another project now is too tempting.

Sstripey

I'm with Scot Prov as well, with a policy just over 20 years old. I've just asked them for some figures, as I'm really unhappy about the lack of any bonus for ten years. They claim to be putting all the money into terminal bonuses, and then of course don't guarantee that they will pay them, although they've given a little bit away there for the last few years.
Easily the worst With Profits policy I've held

Did you surrender or sell in the end, Thrupny?

Thrupnybit

Sstripey wrote: »

I'm with Scot Prov as well, with a policy just over 20 years old. I've just asked them for some figures, as I'm really unhappy about the lack of any bonus for ten years. They claim to be putting all the money into terminal bonuses, and then of course don't guarantee that they will pay them, although they've given a little bit away there for the last few years.
Easily the worst With Profits policy I've held

Did you surrender or sell in the end, Thrupny?

I sold - a gain of about £700 on surrendering. Was a lot of hassle. Phoenix (Scottish Provident) were dreadful, slow, gave a different story nearly every time I rang. Looking forward to cancelling a critical illness plan with them in the next weeks.!

dunstonh

Looking forward to cancelling a critical illness plan with them in the next weeks.!

Be wary. a lot of older plans have better coverage than modern plans.

Thrupnybit

Having seen an IFA, going for health insurance rather than critical illness (current one tied up with life cover). Hoping we've been well advised as it was the direction I was thinking of going anyway.