Surrendering Endowment (Who With?)

camstop

Hi

I have been given a compensation offer on a Prudential endowment which i plan on accepting.

They are offering £14980 as a surrender value too but was wondering who else i should try for selling my endowment to and is there any pitfalls to watch out for as i fancy changing it to a repayment mortgage.


Thanks

EdInvestor

Post some info about the endowmwnt

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate on mortgage

Pru endowments are some of the better ones and may be worth keeping.

camstop

Hi Ed

Guaranteed sum assured...... I'm sure it was between £13500-£14000 but i've not got that detail to hand.

Declared bonus... I haven't got that info from my last yearly statement but it says on my compensation offer " Your current surrender value includes £749.00 which is the current value of the extra bonus. We have not included the extra bonus or the cash sum in the calculations and therefore, your compensation has not been reduced by this."


Monthly Premium... £50.92

Target Amount... £39000

Maturity Forecasts 6% = £32000

Surrender value... £14980.00 as at 12/03/07

Maturity Date... 19/10/2015 (25years)

Interest rate on mortgage... 6.25% Abbey

Compensation... £2928.29


My thinking was if i could get a bit more for selling my endowment than they are offering i could cut my mortgage down to £19-20k and take out a 5 year ing repayment mortgage to deal with that.

EdInvestor

Maturity Forecasts 6% = £32000

If you surrendered the endowment and used the lump sum and the compo money to reduce the amount owed, also increasing the mortgage payment by the endowment premium amount, your return at maturity would be 35,403, which handily beats their return @6%.

And of course there's no risk.

That's the problem with endowments these days - even the better ones - the risk premium you expect for a stockmarket investment over cash or reducing debt has completely disappeared

camstop

Thanks for that Ed.


So what is the best way to get the most selling my endowment?


I notice some sites are claiming to beat the surrender value and has anyone had any good or bad dealings selling their endowment?

JoeK_3

See a good Independent Financial Adviser as they will arrange for the whole market to quote and to buy your policy.

JoeK

camstop

Am i right in thinking i can put it up on http://www.apmm.org/ to offer it to the whole market?


Thanks

EdInvestor

camstop wrote: »

Am i right in thinking i can put it up on http://www.apmm.org/ to offer it to the whole market?


Thanks

Yes.Avoid companies that will only pay you after they have found a buyer to pass it on to.

camstop

Just an update. Everything went through smoothly and i got £17150 for my endowment and i'm glad i looked around than just taking Prudentials surrender offer. Thanks to all who gave advice, especially Edinvestor :T

amcintosh

camstop,

Who did you use to sell your endowment ?

camstop

amcintosh wrote: »

camstop,

Who did you use to sell your endowment ?

Have a look through this thread...

http://forums.moneysavingexpert.com/showthread.html?t=410834


And it was 1st Policy that made a offer to buy for £17150.


It took less than 4 weeks and a few forms from accepting their offer to be paid out. :T