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Surrender Endowment Policy
Wallace123
Posts: 2 Newbie
Hello,
I have a 25 year endowment policy and have made payments for 18 years and 10 months. I want to surrender it to pay off some debts. There is no mortgage against it but I'm worried that I'll have to pay tax. I have been told that as I've had policy for more than 10 years that I won't have to pay any. Is there anyway of checking this without going to a financial advisor.
Thanks
I have a 25 year endowment policy and have made payments for 18 years and 10 months. I want to surrender it to pay off some debts. There is no mortgage against it but I'm worried that I'll have to pay tax. I have been told that as I've had policy for more than 10 years that I won't have to pay any. Is there anyway of checking this without going to a financial advisor.
Thanks
0
Comments
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You could ask the provider who will confirm no tax to pay.
The bigger issue could be the loss you will make by surrendering the policy.
If you have not option but realised the value you should be aware there is a resale market for some of these policies that may pay you more than a surrender value.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I phoned the provider but they said that I may have to pay tax and I should speak to a financial advisor.0
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One of the problems of regulation is that providers are always trying to avoid 'giving advice'.
See details about the 10 year rule for qualifying policies here
http://www.pruadviser.co.uk/content/nav/about/26674/pghome/34054/48130/48157/I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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