Endowment cash-in?

Tracewhy

In 1999 I opened an Endowment Policy called 'With Profits Savings Plan' I paid this for roughly 9 years then ran into serious financial difficulties and had the policy put on hold. Last year I queried re-starting the policy but was told I would need to put in about £400 and as I'd just had a baby couldn't afford to at that point, then promptly forgot about it.

A few weeks ago I received a letter from said company that due to a changing financial market they were investigating a 'take-over' which got me thinking about it again.

I rang them to ask for a quote for re-instating and have said that I no longer have that option. I either withdraw the money now or wait the 7 years until the plan is up. If I wait then bonus's continue but of course nothing else will.

They have given me a figure (over the phone so awaiting the exact figures) of 3.5kish if I withdraw now and if I wait the 7 years all they would guarentee (although this could be higher) is 4.2k ish.

My question is, should I withdraw, find a company that buys them or just let it sit there for next 7 years?

markwilkinson

How much have you paid in?

If you are in profit at 3.5k pay out then I would suggest you take it now. All they are guaranteeing is another £700 over the next 7 years, that's £100 a year. I think you can do better wih your 3.5k over that period.

McKneff

Companies dont buy them anymore..........

Does it still provide life cover if you leave it where it is.

Or you could take it and invest it elsewhere, even a cash isa