PHOENIX Royal SunAlliance Endowment

PharmaAl

Hi there I was wondering if anyone could reassure me about a decision I have made?

I have the above policy taken out in July 1997 to cover a mortgage of £75k with a monthly premium of £143.27 over a period of 25 years

Current maturity projections as below:
3.25% 51,700
4% 55,800
5% 62,000

Surrender value at £14,030 including the guaranteed bonus of £3,516

We have claimed for the shortfall, thanks to Martin's advice and have sorted out a repayment mortgage but feel the policy will never perform and should go! Have been told it is not attractive to the secondhand market

Have I missed anything?

EdInvestor

Post a bit more info about it:

Guaranteed sum assured
Declared bonuses

Interest rate payable on mortgage

JoeK_3

Is your policy still linked to your existing mortgage?

JoeK

PharmaAl

Hi there

sum assured is 34k plus the bonuses of 3.5K and the declared bonues are 3.5k, mortgage has been taken care of so we are using this as a savings policy

Anything else needed???

many thanks for looking at this for me!

JoeK_3

As the endowment is no longer required to repay the mortgage, the need to worry has gone.

What you need to do now is to compare the investment with other savings mediums for the future, plus look at a number of other varyable.

Are you cautious investors?

The policy that you have has adopted a cautious risk profile and hence the small growth rates being projected.

Here are your choices:

1) Carry on with the investment
2) Sell the policy on the TEP market
3) Make the policy paid up
4) Surrender the policy to the insurance company

A complete analysis has to be conducted by an Independent Financial Adviser to give you the financial implications of all the options.

See an adviser that can conduct this for you first.

JoeK

EdInvestor

PharmaAl wrote: »

.. mortgage has been taken care of so we are using this as a savings policy..

You may be better to use the money to reduce the size of your repayment mortgage.Post the interest rate payable on the mortgage so we can see.

PharmaAl

Thank you both very much for this advise. I was trying to make the decision myself about what to do, but you are probably right I need to get some professional advise. I feel that I know so much more now that have done some research myself and may even understand the advisor when I see them!! have a great weekend and :beer: