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Endowment question what to do…
Catplan
Posts: 456 Forumite
Not sure what my options are as I kinda took my eye off the ball on this.
Endowment policy has a year left to run, it was taken out in theory to pay off mortgage, transferred to offset mortgage moved, borrowed more mortgage paid off, so it’s not required for its original purpose and I’d probably want to put it toward retirement or as much as possible.
I did look into “selling” not sure if that’s the correct term about ten years ago, I recall I had three “offers” I think it was called surrendering?
is that still an option? Or is the term too short now, the reason I kept it on, was basically it also provided life cover and critical Illness cover. So lump sum paid out in worse case.
Endowment policy has a year left to run, it was taken out in theory to pay off mortgage, transferred to offset mortgage moved, borrowed more mortgage paid off, so it’s not required for its original purpose and I’d probably want to put it toward retirement or as much as possible.
I did look into “selling” not sure if that’s the correct term about ten years ago, I recall I had three “offers” I think it was called surrendering?
is that still an option? Or is the term too short now, the reason I kept it on, was basically it also provided life cover and critical Illness cover. So lump sum paid out in worse case.
What are my options?
I assume I should source alternative life / critical illness cover if I wish to provide for that in worse case?
what are my options around the endowment?
I’d like to put it towards retirement if possible.
When I took it out, it was to cover 45k mortgage I suspect it going to have a 4-6k short fall.
I assume I should source alternative life / critical illness cover if I wish to provide for that in worse case?
what are my options around the endowment?
I’d like to put it towards retirement if possible.
When I took it out, it was to cover 45k mortgage I suspect it going to have a 4-6k short fall.
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Comments
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Let it mature then invest the ~40k lump sum.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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I wouldn't have thought selling now would b sensible. You are not going to get the same value from selling as you would from letting it run to the end.
After that - you don't say how long to retirement but you could put it into pension - maybe a sipp? It really depends of you r time frame ( how long to retirement) as to what you choose to invest it in.
As for life cover/critical illness. Again, depends on circumstances. Do you feel you need it?0 -
47, still a few years in me yet.VXman said:I wouldn't have thought selling now would b sensible. You are not going to get the same value from selling as you would from letting it run to the end.
After that - you don't say how long to retirement but you could put it into pension - maybe a sipp? It really depends of you r time frame ( how long to retirement) as to what you choose to invest it in.
As for life cover/critical illness. Again, depends on circumstances. Do you feel you need it?0
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