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Cashing in endowment?

Options
Long story cut short - split with partner in October and have now sold house. Endowment is left to sort up. I have two options:

1. Cash it in now and give him his half.
2. Keep it as a savings and give him his half from house money.

I have rung Axa today to get a surrender value. They say just under 5000 but i've paid in just over 6000. So is it worth waiting until it breaks at least even? Will this ever happen? Or should i just cut my losses and cash it in now?

Any advice appreciated as ex is really annoying me by constantly asking me what i am going to do with it and demanding his half!!

Comments

  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Is this a unit linked or With profits endowment?

    Post some info about it:

    Guaranteed sum assured
    Declared bonuses
    Monthly premium
    Maturity date
    Maturity forecasts



    Would you need to replace the life cover?
    Trying to keep it simple...;)
  • horseless
    horseless Posts: 22 Forumite
    EdInvestor wrote: »
    Is this a unit linked or With profits endowment?

    Post some info about it:

    Guaranteed sum assured
    Declared bonuses
    Monthly premium
    Maturity date
    Maturity forecasts

    Would you need to replace the life cover?

    I actually don't know a lot about it :embarasse I just seem to have all the documents as I paid for it!
    Just looked at some of the paperwork and it says the monthly payment is used to buy units in the with-profit fund.
    It was originally taken out to cover a 37850 mortgage, costs £61.32 a month, was started in may 99 for 25 years, no bonuses (?) forecasts ?

    Sorry, just don't know what to do - I do know its signed to Cheltenham and Gloucester.
    :sad::cry:
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    If you cashed in the endowment and then invested or saved it such that it got an average of 5% return over the 19 years to maturity, and you also paid the premiums in every month as well, you would end up with 35,590.

    So you need to compare that figure with AXA's maturity estimates, ring up and ask them to send these to you.
    Trying to keep it simple...;)
  • horseless
    horseless Posts: 22 Forumite
    Thakns for the advice.

    I don't want to keep it for the next 20 years, I just want to break even. Ex is becoming increasingly annoying DEMANDING his share.

    Of course, AXA is closed at the weekend so I will have to wait to Monday to ring and see about taking his name off and continuing it myself - assuming I can do this?
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    The question is, are your chances of "breaking even" better by keeping the endowment or by surrendering it and putting the money in a high interest account?

    If you want to get your ex off your back just pay him out of the sale proceeds and decide about the endowment later ( first getting his name off it, of course). To speed things up in case you want to surrender, suggest you contact C&G to get it unassigned.
    Trying to keep it simple...;)
  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    Remember, the insurers estimated values at maturity are regulated and do not necessarily reflect what the insurer believes you will receive. After the problems that the alleged endowment mis-selling brought us, these estimates could be considered by some (myself included but I'm no expert) to be conservative.

    You may have another option in making the policy paid-up. By doing this you would delay your ex getting his share. This may be spiteful but I do not know the circumstances of your split. Maybe you would enjoy being spiteful.

    Take the advice of others but make your own decision. Keep it and if it turns out to be a lemon, accept it. If it exceeds expectations, enjoy the fruits of your risk taking. Ditch it and the split with your ex will be more final.

    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
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