Friends Provident Endowment

Gorgeous_George

My FP endowment policy was taken out in Aug 1999 and was meant to reach £20K by 2019. Surrender values have been as follows:

17/12/2002.......... £1,329.33
12/01/2003.......... £1,381.00
14/03/2003.......... £1,397.25
18/05/2003.......... £1,544.83
02/06/2003.......... £1,592.50
02/07/2003.......... £1,641.39
03/09/2003.......... £1,780.60
07/10/2003.......... £1,830.99
04/07/2004.......... £2,420.37
30/03/2005.......... £3,027.65
18/10/2005.......... £3,425.76
15/10/2006.......... £4,062.13
01/11/2006.......... £4,115.49
02/12/2006.......... £4,168.91
02/01/2007.......... £4,222.35
01/02/2007.......... £4,275.85
18/03/2007.......... £4,652.75
02/04/2007.......... £4,701.91
11/05/2007.......... £4,776.46
02/06/2007.......... £4,825.66

The fund is 'WITH PROFIT (4) (100%)' and I have £51K of critical illness cover included in the £66.96 premium.

Projected values are:
£14,500.00 assuming 4% annual growth
£16,800.00 assuming 6% annual growth
£21,400.00 assuming 8% annual growth

The surrender value isn't keeping pace with my payments (I've paid in £6,294.24!) so is it a no-brainer? Should I ditch it or is there a chance that it will perform from Year 9 onwards?

Advice appreciated. Unlike my SL policy, I would seriously consider cashing this one in.



GG

dunstonh

I woudl use the 4% projection with the FP with profits fund. However, most of their endowments have access to the unit linked fund range with funds with 0.75% annual management charges which makes them quite good value. These have the potential to hit the 8% a year.

Switching is free. Contact FP and ask them for a list of the alternative funds and a fund switch form.