Options - Old With Profits Life Policy

Darkstar

I am just checking out my options. I have a with profits life policy that has been running for over 22 years now and has a cash in value of £845. My premiums are £8/month, it has a life cover element of £22K and a maturity date in 31 years. I was planning to sit on it till February next year and then cash it in, I appear to get a decent annual bonus that may be worth waiting for. Is there another option I should consider, sell it etc.

dunstonh

It is possible this plan benefits from LAPR tax relief. That would give it a bit of a jump.

Also, check the policy out carefully. Is it a whole of life assurance that doesnt mature but you stop paying into in 31 years time?

Being an industrial branch policy and not ordinary branch, there will be no market for it. Plus it is primarily a life assurance and not an investment plan. The value it accrues is designed to increase the sum assured more or less with inflation (some allow the fund to be used to pay for increases).

Darkstar

The plan was taken out in Oct 1984 so LAPR tax relief does not apply.

Guess I will proceed with current idea of taking out specific mortgage cover for a small increase in premium and a large increase in cover and grab the cash early next year once I know my new plan is securly in place.