Do I Cash In My Conventional With Profits Endowment ?

redskins1791

I have a 35 year (Conventional with profits) Endowment plan with Prudential that matures in December 2024, but I am unsure if I should cash it in early ?, the reasons are .....

     Originally this was for a 58k mtge, but because it was falling well short I had to take out a repayment mortage, but kept this plan going (Because they warned me of the shortfall they were not liable for miss selling it apparently)

   Currently I will get about 20k Guaranteed with a final bonus (Not Guaranteed) of 16k, and they said my Cash-in value last month would have been 35k.

  I worry about the words "Not Guaranteed" and wonder if its safer to cash in, if I end up with only 20k thats hardly anymore than the amount ive actually paid in over the 35 years.

Any Advice Would Be Appreciated

Redskins1791

dunstonh

Historically, conventional with profits plans had the potential for a further bonus on maturity.  Its a final check that only occurs on conventional WP plans.   Also, the guaranteed sum insured for which bonuses are added to is usually reduced on early surrender but not at maturity.

   Currently I will get about 20k Guaranteed with a final bonus (Not Guaranteed) of 16k, and they said my Cash-in value last month would have been 35k.

So, as it stands, you take a £1k hit by early surrender.

  I worry about the words "Not Guaranteed" and wonder if its safer to cash in, if I end up with only 20k thats hardly anymore than the amount ive actually paid in over the 35 years.

It hasn't been guaranteed for the last 35 years.  Any reason you are worrying about that now?  Its only pointing out the obvious.

 (Because they warned me of the shortfall they were not liable for miss selling it apparently)its not just that.   If they notify at least 3 times of a shortfall and you never complained within those three years, then you are considered not to have reason for complaint.      The 3 & 6 year rules are there to stop opportunistic and fraudulent complaints. i.e. those that wait until maturity and try to hedge their bets.  Or those rung by a Claims company encouraging a fake complaint for personal gain.