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Keep or surrender endowment
prodda
Posts: 11 Forumite
I asked this question a couple of years back but need to re-visit it again - I have an Aviva with profits endowment that's due to mature in July 2022. The current premium is £60.47 per month (figures in brackets relate to 2015).
It was set up to pay off a £25k mortgage (which I've now paid off anyway) but is projected to make a shortfall. The current value is £12,426 (£12,396), which is £9350 (£9350) sum assured plus £3046 (£3031) previous bonus & £30 (£15) new bonus. The projected shortfall is 1.5% = £11,000 (£11,000), 4.5% = £8,300 (£8,600) and 7.5% = £4,900 (£4,900) - the MEP is £3,600. The surrender value is £10,820 (£9876).
I am thinking about whether or not to cash it in but can't see whether it's advantageous or not (as I would lose the MEP & a possible maturity bonus). If I did surrender it I don't have the funds earmarked for anything else so would probably put it into an ISA. Any thoughts gratefully received.
It was set up to pay off a £25k mortgage (which I've now paid off anyway) but is projected to make a shortfall. The current value is £12,426 (£12,396), which is £9350 (£9350) sum assured plus £3046 (£3031) previous bonus & £30 (£15) new bonus. The projected shortfall is 1.5% = £11,000 (£11,000), 4.5% = £8,300 (£8,600) and 7.5% = £4,900 (£4,900) - the MEP is £3,600. The surrender value is £10,820 (£9876).
I am thinking about whether or not to cash it in but can't see whether it's advantageous or not (as I would lose the MEP & a possible maturity bonus). If I did surrender it I don't have the funds earmarked for anything else so would probably put it into an ISA. Any thoughts gratefully received.
0
Comments
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Do you have dependents? As the policy does provide you with a degree of life cover.0
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Yes, I do have dependents & also have about £65k in ISA's. I think the life cover is £25k. Cheers.0
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