ENdowment advice - cash in or switch to unit linked?

mrwilliams_2

Hello.
I have just recieved a letter about my 10 year old S Widows endowment.
Have the options to carry on (hmmmm....), surrender or switch to unit linked endowment.
Here are a few details

Started Oct 97
£ 50 month premium
Ten year surrender value £6711
Guar Sum assured at 20 years £10220
Existing bonuses £1154
Terminal bonus £2047 (this year)
ie current cash value £6710.98
At present this has performed worse than a savings account, but is it likely to improve ovr next ten years?
Any advice gratefully received.
Thanks,
Mark

dunstonh

Scot Wid do have some good unit linked funds and some of their endowments benefited from increased allocation in later years. So, they are certainly options to investigate.

At present this has performed worse than a savings account, but is it likely to improve ovr next ten years?

Has it?

You have paid £6000 in.
The current value is £13,421
The current surrender value is £6710.
savings account at 3% over 10 years would be £6990.

Not a lot in the surrender position and the savings account. If you stripped the cost of life cover out then they would be about the same.

I think reviewing the unit linked option finding out what funds are available and what the ongoing costs are needs to be done before you can make any informed decision. Leaving it with profits is probably the least likely option.

mrwilliams_2

Thanks for such a quick reply
will look into unit linked option
Cheers,
Mark

EdInvestor

What interest rate are you paying on your mortgage?

mrwilliams_2

Endowment not for mortgage - just an investment started 10 years ago....

mrwilliams_2

Mortgage is about 150,000 at 4.29 (fixed until sept 08)