Endowment cash in?

Norlye

Hello, 1st post.

Asking for thoughts.

My wife & I have a endowment policy, originally taken out for a mortgage, but we have changed to a full repayment mortgage so the endowment is now a windfall only. Good job really as it is looking to be approximately a 1/3 short on what was originally promised/ guesstimated.

Anyway, it is due to mature next May, 2 months post Brexit. I guess the stock market is going to go down regardless of what happens. As of yesterday it was worth £40k. Do people think it is best to get out & possibly quit whilst we are ahead, or do we lose significantly more by quitting early. I have read about final bonuses, but are they enough to cover a possible 10% short term drop in the stock market that I guess will effect us so soon after Brexit. We have no interest in re investing as we are now financially in a good place & this is to spend!!

Thank you for any thoughts.

Browntoa

Stick with it , there's no point in cashing it in a year early

dunstonh

I guess the stock market is going to go down regardless of what happens.

It may do. It may not.

Do people think it is best to get out & possibly quit whilst we are ahead, or do we lose significantly more by quitting early.

We do not have access to your policy terms. You do. So, what is the cost of early surrender?

I have read about final bonuses, but are they enough to cover a possible 10% short term drop in the stock market that I guess will effect us so soon after Brexit.

Is yours with profits or unit linked?
You dont get final bonuses on unit linked plans (unless its a unitised with profits fund).

Why do you think Brexit will be negative on your value?

Norlye

The endowment is a Homebuyer plus. Its a with profits policy.

When I spoke to Axa, yesterday, they now have the policy ,they gave me a surrender value of £38800. I just guessed that’s ish what I would get if I started to cash it in soon

Everyone I know associated with industry, these include friends more than tv talking heads, think Brexit is a bad idea & will impact negatively in the short term.

So just thinking this will impact on my value as some of the units bought will go down in value.

dunstonh

Everyone I know associated with industry, these include friends more than tv talking heads, think Brexit is a bad idea & will impact negatively in the short term.

Correct in respect of short term issues. Which is why investment values rose after the referendum result. The markets viewed it negatively. Sterling went down which pushed global investment values up.

So just thinking this will impact on my value as some of the units bought will go down in value.

A bad Brexit will likely see your value rise. A good Brexit could well see your value fall.

XXIV_May

I have had a number of endowment policies that have matured. Surrendering when so close to the end does not make sense to me. I assume the policy value has a number of components. The sum insured is payed at the end of the contract and is a guaranteed sum. If you cancel early this amount is reduced. In the old days this would be a hefty penalty but I am not so sure in the modern regulated climate. My policies attracted bonuses which once added could not be taken away. The cream on top of the cake was a final bonus which increased the value of the accumulated bonuses. This went down over the years reflecting the reduction in interest rates. My first matured policy paid out over 500% of the sum insured the last one last year just 300%. Last years maturity was more than the surrender value showing prior to maturity. I can't see Brexit having a big influence as your policy is not directly linked to stock market investments.