Help! No Mortgage Do I Need Life Cover?

keicar

I was recently made redundant, but now in the fortunate position to pay off our mortgage, which I just done.

My question is we still have a Prudential Endowment running which I am considering cashing. - It is on amber alert and still has 17 yrs left to run, the only thing stopping me is the £45K life cover aspect of it. I live with my partner and she is in good employment, with no children.

Therfore with no mortgage and quite a healthy bank balance would it be prudent to cash it and open a couple of ISA's (one each) and put the rest into a high interest account?

The surrender value is just shy of £14k, I have offered it to a few companies, but they are unwilling to purchase as its 'Unitised'

Would appreicate any pointers on my dilemma!

Thanks in advance.

CLAPTON

simple life insurance is cheap so i would cash the endowment in and purchase simple life insurance if you feel you need it
and invest the money as you see fit.

dunstonh

Pru have a 100% record of hitting target so far. in 2005, average surplus was £2200 and in 2006 it was £3300. They have some of the best with profits funds available. There is also the orphan assets disposal that should happen before 2010 that could be worth a few thousand.

There isnt enough info for us to do an analysis but you dont write it off on the basis of projections which are usually flawed.

keicar

Thanks, dunstonh but I was under the impression that the Pru had no plans to offload their orphan assests. If so, as my policy was originally purchased in 1995 as a Scottish Amicable Policy will this affect?

Thanks Again

dunstonh

Soct Am was 95% on target in 2005 and 96% in 2006. They arent quite as good as Pru but the gap is closing and its trending in the right direction.

The Pru details came out this week and I havent looked at them yet. It's a pdf for me to read when I am far less busy and far more bored