Endowment - quick question

hayley1471

But I would still have to consider Life Insurance and Critical Illness Cover, as I have dependant children.

EdInvestor

If you post the interest rate on your debt we can do a calculation to see what is the best thing to do.

dunstonh

Ed, I was looking at the APRs in the sig.

Hayley, you would have to replace the life cover but that has gone down in cost and as long as you get cover before you surrender then it isnt a problem.

hayley1471

dunstonh wrote: »

00-12 months 4.18%
12-24 months 13.85%
24-36 months 18.55%
36-48 months 10.46%
48-60 months 17.18%

Another quick question - have you included the deductions for managing the fund in these calculations? Is the % calcculated before or after deductions?

I am hoping to reduce the APR of my debt to 2.9% for a couple of years.

hayley1471

Also it does say on the letter that there is a penalty for early redemption.

dunstonh

Another quick question - have you included the deductions for managing the fund in these calculations? Is the % calcculated before or after deductions?

Those include the annual managment charge.

Also it does say on the letter that there is a penalty for early redemption.

You may need to delve into the policy document for this but see if you can find out when the early surrender penalty ceases. As I mentioned higher up, older LTSB cases used to be 10 years so it may be worth waiting until then to avoid a penalty. It really depends on the size of the penalty.

Dont expect double digit returns in 2008. It could happen but its not expected to happen.

hayley1471

Yes, it is 10 years. I think I will keep it until after the 10 years is up - just 20 months away, and have a look at it again then. Thanks for all your input. You are a very knowledgeable bean.