Endowment Policy

jayship

My friend has an endowment policy which is underperforming but has an element of critical insurance cover which is valuable and wants to keep. He pays around £180 per month.

We would like to know from forum readers whether it would be possible to freeze the endowment premium but continue to pay for insurance cover until expiry in 7 years? He has been in touch with Pru but has not received a satisfactory reply as yet.

Feedback from readers will be appreciated to make a decision.

dunstonh

It is possible with a small number of plans to be made paid up but retain cover by paying it from the investment (and therefore erode the value). However, it is unusual with endowment due to taxation rules. Pru will be able to confirm if they offer it.

You say the pension is underperforming. However, if it is the Pru With Profits fund then it is almost certainly outperforming cash savings. It may be on track for a shortfall but that isnt about it underperforming cash or alternatives but underperforming to a target set 20 odd years earlier.