Endowment Surrender Advice Needed

samj_2

HI I WOULD REALLY APPRECIATE SOME ADVICE

We have a Legal and General endowment at moment figures are

Death Benefit 27750
Surrender value at todays date 18800
monthly payments 35.00
maturity date may 2012
maturity forecast 4% 23800 6% 26100 8% 28500

Our mortgate rate is 5.69% and we can make overpayments each month of 499.00. Do you think it would be better to sell or surrender policy and now and make overpayments. I have worked overpayments out and looking at them surely it would make more sense to do this.

dunstonh

unit linked or with profits?
if unit linked which funds and what is the current value?
if with profits what is the basic sum assured, current annual bonuses and current terminal bonus?

samj_2

Hi
with profits, basic sum assured £8492, total annual bonuses for 2006 £144.10, existing bonuses £6433 and current terminal bonus 98%

Thanks
Sam

EdInvestor

samj wrote: »

maturity forecast 4% 23800 6% 26100 8% 28500

Our mortgate rate is 5.69% and we can make overpayments each month of 499.00. Do you think it would be better to sell or surrender policy and now and make overpayments. I have worked overpayments out and looking at them surely it would make more sense to do this.

If you did this then your return at maturity would be 27,218, whereas the L&G fund is likely to make around 6%, producing 26,100 which is lower - and of course also not guaranteed.You should factor in the cost of new life cover if you need it.

Can you make one large overpayment of the mortgage using the S/V? If not you might consider remortgaging at some point so as to do that.