Maturing Endowment Policy & Uni Fees

bigbob1

Hi, we have a 25 year old endowment policy maturing later this year, just before our only child starts university.  We have completed the online assessment and as I am self employed and my wife works part time, our child is entitled to a loan for their tuition fees as well as maintenance.  

Obviously we will need to declare the cash injection from the endowment policy when we receive it (I’m guessing in next years assessment?).  My questions is, will we be forced to use it towards their student loans or can we use it towards our much needed house improvements and also have some left over for savings as we have never had any as such in the past 25 years+. 

Our mortgage was switched to repayment many years ago and was paid off recently. 

thanks in advance...

silvercar

Your endowment policy isn't earnings, so wouldn't be part of the calculation. In the same way that savings aren't in the calculation.

bigbob1

Thank you for your help and response, there is a box on the financial forms we had to fill in, I’m sure there’s a box that asks for your savings or income from savings?... that said with the coronavirus... and the current markets, I’m sure it will impact on our policy’s final bonuses... thanks again.