Should I cash Endowment with nine months to go?

grahaml620

Hi All,

I have an endowment policy that matures on September 2015. It was originally a Scottish Amicable with profits policy, and it was taken over many years ago by Prudential. It is running a bit short and I have savings that we could now pay off the mortgage with nine months to spare.
The question that no one can seem to answer is, will there be a terminal bonus on the policy?
Obviously if there is a substantial bonus to be earned, I will leave it to run it's full term, if not should I just cash in??

Any help or advice would be appreciated.

Thanks

dimbo61

Why not ring them up and ask?

McKneff

No one else could answer.


The company could give you an educated quess, but that's all.

grahaml620

I did try, but they told us to consult a financial advisor

TrickyDicky101

You won't lose out on all the terminal bonus (assuming there is one) if you cash in early? Have you requested a surrender value? Ordinarily, I believe this should show the breakdown between basic sum assured, reversion army (annual) bonuses and terminal bonus element.

Daniel54

I had a Scot Am ( subsequently Prudential) with profits 25 year low cost endowment which matured a couple of years ago.If yours is the same or similar,there is a terminal bonus and I was pleasantly surprised by the final amount,although of course it was still short of the original anticipated figure

It is my understanding the terminal bonus is only fully realised if the policy runs to term.For the sake of 9 months premiums,I would just let it run rather than risk potentially losing out

It was paid very promptly ,so no complaints there