Are endowments still a good way of saving?

jhow

With all the bad press, are endowment policies worth keeping for savings purposes? In the past, answers have been yes, with the clue that companies want to buy them, therefore they must be making a profit, however, would my £46.77 per month be better off going to another savings account, rather than waiting till 2017 to see what happens? Should I take the £7,000 out and put it elsewhere? I would appreciate your views.

deemy2004

The companies buy them at a BIG discount.

If youve got when then you'l take a big hit if you cash it in early and sell it at a loss to a third party.

Ive thought of buying an endowments... thats buying one second hand. But even then they don't look that a good bet, when the wheeler and dealer companies take their %.

If youve got one, then keep it
If your thinking of getting one - DON'T !
If your thinking of buying one second hand .... then maybe ...

dunstonh

If you are a higher rate tax payer and have a range of decent funds to select from and in a low charging endowment then the answer it potentially yes.

However, ISAs, low yield OEICs/UTs would be considered better value.

jhow

Thanks for your replies, I am taxed on salary- 22k, when you say answer is yes, please clarify, yes, put future premium elsewhere- along with the £7000, or yes keep the endowment running to term. I would say these are my main savings, but right now am not relying on them for anything other than a dire emergency, if none arises, Im going to Las Vegas. 2017 Is a long time to wait.

EdInvestor

Hi jhow

If you post the following figures we can check it out:

Which insurance company

assuming it is a With profits endowment....

Guaranteed sum assured
Declared attaching bonuses
Surrender value (up to date)
Terminal bonus amount (if any)
Monthly payment
Maturity date

Some policies are worth keeping, some are not, you need to assess them individually.