Endowment payout process

renMike

I'm in the fortunate position of my endowment policy having met it's target (did have up premiums several times though to achieve this) and hence being able to pay off the interest only part of my mortgage. I can do this in April without penalty but think i want to stop paying into it until then. 
Am I best to:
A) stop paying in, but leave it in place.
stop paying in, and transfer it out to somewhere temporary.
C) keep paying in, in the hope of better rates and an excess.
If I were to do then where is the best place to put circa 50K for two months?

Hodge58

A 25 year endowment is just that. a 25 contract and at the end the provider will pay out. You cannot extend( ie pay more) the term as this would break what is known as qualifying rules (tax Exemptions). You can do with it what you like after payout

renMike

Thanks for your thoughts on this. Having spoken to the provider they are willing to terminate the contract early, without fee as far as I can tell, meaning I can then pay off my interest only part of my mortgage. The question is should I and if so where should the funds go in the short term?

dunstonh

With the increases, that would restart the qualifying period again, unless it was a non-qualifying policy to begin with.   Have you had enough years since the last increase in premiums to gain qualifying status?

I suspect you will need to ask the provider if the plan is qualifying or non-qualifying and if it is qualifying has it met the qualifying criteria.