Endowment maturing

Ruthy5

My endowment policy of 25 years is due to mature this June, I receive universal credit, I am worried  my benefits stop once the pru pay my endowment into my bank, I am not cashing it in early, it’s maturing to the end and I will be paying a huge chunk off my mortgage the minute the money hits my bank 

dunstonh

Using it for the mortgage will not have any impact on your benefits.  Only if you didn't use it for debt clearance could it potentially have an impact.

Ruthy5

Thanks for replying, yes the main chunk will be paid on my mortgage but keeping a small amount back to buy a car  but not a great deal, just enough for a car, no more than £4’000

dunstonh

Any money retained is combined with any other savings and only if the total exceeds the limits then it becomes an issue.  If you remain under the limits allowed for savings then you are fine.

Ruthy5

When my endowment policy matures will I have to pay income tax, I don’t pay income tax as I’m not working and my policy has not changed in the 25 years I’ve had it, paid the full premiums, and the policy hasn’t been altered in any way

dimbo61

No you don't have to pay Income tax on a maturing  endowment  policy 
Check what the maximum  amount  of savings you can have and still claim benefits.
Use the money from the endowment to pay as much as you can off the mortgage 

Ruthy5

Thanks. It’s £6’000 allowed in savings. I have no other savings anywhere so I’ll just keep back about 3 or 4 grand, enough to buy a car, the rest is going on my mortgage