Endowment policy

Dizzydee

My OH has mortgage endowment policy that he has kept paying into although he has sold his property. He has paid it for 10 years and has another 15 to go. Would it be best for him to surrender this policy and put the money into a savings account, or will he benefit more long term if he keeps paying for another 15 years?

dunstonh

Some endowments are brilliant, some are average, some are rubbish. Which is your OHs?

Increasingly, endowments are returning to paying a surplus whilst some of the poor examples are getting worse so you cannot make any assumption on quality without knowing the facts.

EdInvestor

Post some info

provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
maturity date
maturity forecasts

Dizzydee

Thanks guys!

Provider - Norwich Union
Declared bonuses - Regular bonus from previous years £2,946.90. Regular bonus added on 31st Dec 2006 is £153.10 so total regular bonus is £3,100.00
Surrender value - Don't know at the mo. Will ring them tomorrow.
Monthly premium - £87.36
maturity date - 11 Sept 2002
maturity forecasts - Says "Regular Bonus Rates for 2007 have been kept at the same level as last year.

Hope this helps.

EdInvestor

Maturity forecasts are their projections of how much the policy will be worth at maturity if it grows by 4%, 6% or 8%.

dunstonh

plus we need to know if the terminal bonus is included in the projections or not (NU do it both ways depending on how figures were obtained and what version you have) and what mortgage promise value there is (could be zero, could be many thousands).

The 2001 and 2004 bonus statements will give you the mortgage promise value.

Disco_Des

Also dont forget the "reattribution" bonus that should be paid next summer early indications are that it is around £2000 for NU customers. look on their site to check for elegibility. Funny I think that the £5bn that the NU has to give to its 1.1 million customers adds up to more than £2k per person :mad: