Unit linked endowment Hambro Gardian

mikebh50

Hi

Have an endowment with the above which is due to pay out 30,000 in 3 years time. When we took the endowment out we were not married so where recommended to take a policy out each so 2 policy's for £15,000 each. I asked for a surrender value this month and both together would payout just over £27,000 now I think I am right in think there are no bonus on unit linked ones so as we are paying in just under £90 a month between us should I cash it in pay what I can off the mortgage and put the rest in our ISA's and just over pay the mortgage by £100 a month in stead of the endowment . Any advice greatly received.

Thanks
Mike

mikebh50

Hi

Any advice??.

Thrugelmir

If it's unit linked then the value could be higher than £30k at maturity. You will penalised for early encashment. So suggest you don't rush things however appealing the £27k looks now.

kingstreet

Questions to ask yourself, or the professional you appoint to advise you;-

Are you invested in a fund where the unit price can fall as well as rise? If so, are you happy with continued risk to your capital in return for potential future capital growth?

What do you think the performance of your chosen investment funds might be over the next three years? Is switching some or all of the money into a "safer" investment fund a good idea?

Are there any penalties for early encashment?

Is it a qualifying policy, so the proceeds will be tax-free, or non-qualifying, creating an income tax liability for a higher rate taxpayer?

Do you need the life cover?

What else could you do with the premiums if you surrender?