Endowment options

holf0876

I have paid my endowment mortgage off over ten years ago.

It is due to mature in Oct 2023, the endowment mortgage bank have tried to tempt me to take an early release for my policies. This would mean that I would receive £ for each of my 10 policies.

Should I take this early payment or should I wait for it to mature in Oct 2023?

dunstonh

It is due to mature in Oct 2023, the endowment mortgage bank have tried to tempt me to take an early release for my policies. This would mean that I would receive £ for each of my 10 policies.

That sounds very strange and would have me on guard.
The bank should have nothing to do with the endowment policy now. Only the insurance company.  And no insurance company would attempt to get you to surrender a policy early due to potential consequences.     Most UK banks do not have staff with the regulatory permissions to provide advice. Or if they do, they are highly restricted in what they can do and usually its limited to discussing their own range of products.  Not those of others.  Banks got into a lot of trouble years ago for bad advice on things like this.  So, they tend to avoid it now.   What you describe sounds more like the its from those bad old days.

Should I take this early payment or should I wait for it to mature in Oct 2023?

Impossible to answer without proper analysis.  That means we would need to do know more information.

holf0876

Sorry, the bank have passed this on to a third party company called ReAssure.

I have checked with my bank to see if is a scam, they reported that all endowment policies was passed onto them.

I completely forgot all about the mature date and any potential money coming back to me.

They have sent me the 10 policies with a surrender value for each policy.

I was not sure what would be better for me.

kind regards

Paul

dunstonh

Sorry, the bank have passed this on to a third party company called ReAssure.
I have checked with my bank to see if is a scam, they reported that all endowment policies was passed onto them.

Reassure are a genuine company.  It is the bit about them tempting you with early surrender.  That is the bit that concerns me.  Normally, they would just issue the annual statement and in the year leading upto maturity, start the maturity process.    

What is this temptation you refer to?

holf0876

They have offered me around £500 for each policy. Would I get more when the policy mature in Oct?

Thank you

Paul

dunstonh

Can you clarify what you mean by offer?
Normally, policies are not offered anything pre-maturity.    They have a surrender value if you want the money out earlier but they don't normally offer it as a form of temptation.      

Would I get more when the policy mature in Oct?

It depends on whether earlier surrender includes any early surrender penalties.  It will also not be subject to the investment returns between now and maturity.  Returns were negative in 2022 and could be in 2023 but it is statistically unlikely (only 4 times since 1969 that there has been consecutive negative years).   So, possible but not commonplace.