Mortgage paid off - what to do about endowments?

Newly_retired

Just used part of retirement lump sums to pay off rest of mortgage.
Only £10 admin charge ( C & G ) .
We have 3 endowments and are thinking of keeping one with the Pearl which looks like it will be fine - matures next year. Not so sure about Friends Provident and Sun Alliance which go on till 2009. Small amounts only here. Cash in, make paid up or wait and see?
Any advice please?

johnbfan

Personally, even if they are for small amounts I would leave them to run if you can afford to pay them. You will lose out on the final bonus and it is a form of saving.

shaunrc

Hi

The main question is where your money is invested. If you made me guess I would guess that you are in a with profit fund for your endowments.Is this true?

dunstonh

Phoenix is probably the worst, Pearl not far behind with Friends Provident being the best if you have the unit linked funds. All three are not exactly top selections though.

With Pearl maturing next year, it may be worth keeping. Although Pearl homebuilder V2 endowments ceased to have a surrender penalty after 10 years although I think the V1 kept one right to the end.

The timescales suggest you should keep them going but without figures and fund data there is no way to tell.

EdInvestor

Post some info about the policies

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Newly_retired

Thanks folks. Here are the details: All are With Profits
Pearl: Green letter - on track Target £20 000 Maturity date Sept 08
Monthly

Newly_retired

Sorry - got interrupted. Will start again tomorrow. Thanks for replies so far.

Newly_retired

Here we go again.
We have decided to keep the Pearl going as it's only a few months to go and a reasonable estimated maturity value with a small surplus on a target of £20000 , given final bonuses.
Friends Provident
Target £5000
Monthly premium £10.05
Estimated maturity value @ 5.5% £3820 June 2009
Paid up value £3500 - 3780
Surrender value £3406
Phoenix ( Royal Sun Alliance )
Target £5000
Monthly premium £14.69
Est maturity value £3330 - 3430 Nov 2009
Paid up value £3050 - 3150
Surrender value £2834
This one we definitely want to finish with, one way or another, should have done so long ago, but too busy working to get round to it!
Many thanks for advice.

EdInvestor

Newly_retired wrote: »

.
Friends Provident
Estimated maturity value @ 5.5% £3820 June 2009

If you took it now and put it on deposit @6%, also paying in the monthly premiums you would end up with a bit less than 4082 at maturity.

Phoenix ( Royal Sun Alliance )
Est maturity value £3330 - 3430 Nov 2009

If you did the same with this one you would end up with 3567 at maturity, so gain if you surrender.

I guess these policies still get tax relief, do they?