colonial mutual endowments.sell or surrender

mcclusky_2

we have 2 Colonial Mutual/Winterhur with profit endowment policies for £25.000 and £5,000 which mature in sept 2011. They are currently predicting a shortfall of £5,900 and £1,570 .We complained to winterthur that we were missold the policies and our complaint has been upheld.Winterthur have made us an offer of £3.880.49 and we keep the policies, or we can accept £16,968.74 surrender value for both policies plus the £3,880.49 redress making a total of £20,849.23. If we surrender the policies they will also offer life insurance at the price we would have paid had we taken it out 21 years ago at the start of the policies. The guaranteed sum on the policies at the moment is £16,049.17 and £2,888.09 which is more than the surrander value we are being offered. should we surrender the policies or can we accept the £3,880.49 and sell the policies for more than the surrender value .