Endowment maturing

Dianesr53

Hi all
My endowment policy finishes in June this year way short of projected amount. I am worried that the stock market fall this week will affect my pay out, should I cash in 4 months early or ride it out.

TrickyDicky101

Who's the endowment with, what type is it (ie is it unit linked) and do you have any valuable guarantees with it (such as a Mortgage Endowment Promise)?

Do you have a current surrender value?

Dianesr53

It is with Barclays it is unit link and I have a cash in of £26,000 well short of projected amount of £40,000. I pay £75 per month

enthusiasticsaver

Does the endowment have a final bonus? Cashing it out just after the stock market has fallen is the very worst thing you can do. It may recover in a few weeks. You must have known about the shortfall for a while.

TrickyDicky101

Dianesr53 wrote: »

It is with Barclays it is unit link and I have a cash in of £26,000 well short of projected amount of £40,000. I pay £75 per month

If it is Unit Linked (and not Unitised With Profit) then there won't be a final bonus. Assuming it is Unit Linked then the value will very likely move in line with the markets (in which the underlying funds are invested) so it comes down to your own attitude to risk and whether you want certainty (cash in now) or hold on in the hope of a recovery in unit prices between now and maturity (at the risk of a further fall of course).

silvercar

If there is any Mortgage Endowment Promise you will get something extra if you keep it to term.

enthusiasticsaver

What were your intentions re the shortfall. Have you addressed that by going to part repayment for example?

Dianesr53

Thank you for your replies. I changed to a repayment mortgage years ago when we were first informed a shortfall so I have no worries. I think i will just sit tight for the last few months left