Redemption value of endowment policy

JayF72

I track the performance of my endowment policy on a regular basis and, like most policies, is not on target to pay out the sum assured. I am seriously considering redeeming the policy as I have sufficient life cover elsewhere. When the bid value reaches a good rate, e.g. on Tuesday morning I see how it performed by close of business on Monday, I then contact Scottish Widows to redeem who tell me that I can only cash in on Tuesday's value which, of course, 1) is not available until Wednesday morning and 2) I then take the risk as the bid price could have gone down! Unfortunately, this is an old Black Horse policy taken over by Scottish Widows so there is nothing trackable on an hourly basis as far as I am aware. Has anyone come across this problem? Any resolutions? As with this approach I'm really in the dark and stand to lose (or gain, perhaps) £100's. Many thanks.

amnblog

That's the way unit linked policies work Jay. You cannot cash them in like shares (the life assurance element makes htem more complex).

Why dont you ask SWB if you can switch units (inexpensively) into a fixed rate fund (this may or may not be an option). This gives you time to then effect the redemption.

holly_hobby

Yes, you'll get the bid value on the day of surrender.

What fund (or funds) are you invested in - as some are more volatile and unstable than others. Which would give an idea as to how exposed on a daily basis the accumulated fund value (bid value) may be, and how likely it is (all things being equal of course) that your SV may drop a couple of 1000's over a 24 hr period.

Hope this helps

Holly x

kingstreet

A switch or a surrender will both be forward priced, so it makes no difference which one the OP chooses, he'll still risk the fund price falling overnight.