Endowment connundrum

Guanajuato

I have just received a letter from my endowment provider that it has reached its target a couple of years early. I now have 2 choices - either surrender now and pay off the part of the mortgage it was supposed to pay off or keep the policy going.  When we moved house I reduced the amount the endowment needed to cover. So by using this it would leave me owing £20k on a capital repayment for the next 2.5 years. If I keep my current mortgage payments, I will pay the whole lot off within 2 years. Which is all quite pleasing   I'm minded to surrender and pay off as much as I can. I just have a bit of uncertainty.
The letter mentions needing agreement from the lender if the policy is assigned to the lender. I'm not sure what this actually means or how to find out if it is.  I guess an appointment with the mortgage advisor at the local branch of my lender is probably my best bet

Any help or pointers would be most appreciated.

Old_Lifer

Assigning a policy to the lender went out of fashion decades ago, leaving the policyholder free to stop paying the premiums or surrender the policy at will.    Others on the forum will know if any lender still requires assignment nowadays.

If you have a unit-linked policy it is worth  whatever is the value of the units.

If you have a with-profits policy you may get a terminal (or final) bonus which will be payable in full at maturity.

dunstonh

 I guess an appointment with the mortgage advisor at the local branch of my lender is probably my best bet

No.   Mortgage adviser permissions do not include investment class permissions.  The branch mortgage adviser will not be able to provide any advice in investment class business.

The letter mentions needing agreement from the lender if the policy is assigned to the lender.

Ask the provider if the policy is assigned to a lender.  If not, then no problems. If yes, then you need to get the lender to write to the insurer to remove the assignment.

Guanajuato

Thanks.
I'll check through the documents I've got, but I don't think there was ever a with-profits element.
It seems odd that, if the provider knows whether the policy is assigned to a lender, then they don't just say that. 
Should be mortgage free in a couple of years, and I'll stop receiving green letters printed in red, or red letters printed in green 🤣

dunstonh

It seems odd that, if the provider knows whether the policy is assigned to a lender, then they don't just say that. 

You have been sent a standard letter.   the assignment records may not be available to use on the standard letter.

Thrugelmir

If you hold the policy document then it's unlikely to be assigned.