Friends Provident endowment

cazac_2

Hi all,

I have a badly performing FP endowment, (have already changed my mortgage to full repayment as we have bought bigger and wanted peace of mind), so the endowment was kept running for investment/life cover purposes only. It was originally taken out to pay £67,000 but has almost halfed now, each year its getting less and less and i am considering wether to cut my loses. So i have 3 options;

1. Keep paying into it and hope for the best
2. Stop paying into it and just sit on it till the end date.
3. Cash it in with FP (its unit linked so i cant sell it on the open market)

The details are;
Start date July 1998 - end date July 2023
Premium £130.88 per mth
Payed in to date £14,256
Cash in value Aug 2007 £9,024

FP says to consider growth -
@ 4% to pay £29,000
@ 5.5% to pay £36,700 (reccomended)
@ 8% to pay £53,600

Any advice greatly appreciated,
Cheers
Caz

dunstonh

If its unit linked then it should have gone up in value significantly over the last 5 years.

FP have an adequate unit linked range available and the charges are low and 8% is within the potential of most of the funds they offer.

The endowment could actually be above track even though the shortfall appears large. The charging structure and target growth rate could see those projections improve as the bulk of the charges are made in the early years and not later so you expect an endowment to be off track in the first period.

What funds are you invested in?

cazac_2

Funds invested in? - Sorry havent a clue. I assume the only way to find out would be to ask FP? Let me do this and i'll post the reply.

Didnt even know it was unit linked until i started enquiring on the open market about selling it (and then found out i couldnt). I thought i was quite financially savvy until i started looking this endowment stuff!

Thanks