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2 years to go... Aviva low cost endowment

Hi all,
Our Aviva low cost endowment policy is due to mature in April 2022 - it was obviously taken out to pay the mortgage off at maturity but we've now just sold the house and the amount we will receive is well above the mortgage amount. Should we keep the policy until maturation, or cash it in and invest it elsewhere?
The target amount was £32,775
Monthly premium: £49.13
Surrender Value as at 11 April 2017 = 16,731.32
Surrender Value as at 11 April 2018 = 17,940.53
The regular bonuses for 2017 are 1.00% of the Sum Assured and 2.00% of all your previously declared bonuses.
Following the re-attribution process which completed in 2009, we’ve been able to remove one of the fund related conditions applying to the mortgage endowment promise. This is
good news and means any actual shortfall will reduce by up to £4,775.00 (maximum promise amount), assuming you continue to meet all the conditions set out in ’Answers to
some questions you may have’.
Must admit that I am quite savvy with savings, but this has gone way over my head!
Thanks in advance,
Alun

Comments

  • As it is a with-profits policy it probably  has a terminal  bonus at maturity and your post indicates that it is a conventional policy and not unitised with-profits.  May I suggest that you consider keeping it until maturity.
    If you click on my username and then click on posts and if you scroll down to the beginning,  my very first few posts explain how a conventional with-profits endowment works.
    I have no experience  of the mortgage promise. Others on the Board  with current experience are better placed to comment on that part of your post
  • SonOf
    SonOf Posts: 2,631 Forumite
    1,000 Posts Fourth Anniversary
    The MEP is only paid on maturity if you pay right up to the end.   So, if you surrendered now, the £4775 would not be paid.  If you keep it until maturity, the £4775 will be added.
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