Keep endowment or sell policy?

Roversfan

Hi, I have an endowment policy with L&G (low start build up plan) which is due to mature in sept 2017. It is no longer being used to fund a mortgage. I pay £39.50 a month

Last years red letter with projections gave values at £14,500 at 4% growth, £15,700 at 6% growth and £17,000 at 8% growth

The target amount was £25,000. I was wondering wether to sell it on to a trader or not.

Basic sum assured is £9,200
Existing Bonuses £4,169.40
Bonus 2012 £167.10
Total £13,536.50

The final bonus rate on statement end of Dec is 0%, though I did ask last week and it has now been set at 3% for this year.

Surrender value is £11,514.30

I have been offered £12,160 to buy the policy.

The cash would come in handy to pay off a car loan and then maybe invest the rest, but I just cant decide if its a good deal or weigh up how much I might lose by getting rid of it now. I would of course save myself £39.50 pm x 4 years paying in to it..

Any thoughts appreciated!!

TrickyDicky101

Who has offered you that much? The reason I ask is that given your current surrender value and the amount you pay in each month (assuming you don't need any of the life Insurance that comes with the endowment) I personally would bite the hand off whoever has offered this. It seems very generous.

kickoff3pm

We have have one year left on two similar endowments. For the past five years we've been told they won't cover the mortgage but that not an issue. Currently it's going to be short by £20,00 which is some going considering the mortgage was only £27,000 :-)

But I'm not surrendering mine, the is a likelihood that the last payment will be a lot better then the last and I'm happy to see if it is.