Crap Endowment: pay or paid-up?

Voyager2002

Hello everyone,

I recently received a 'red' letter in relation to my old Scottish Amicable endowment policy. I have already explored the mis-selling avenue, but no joy there. Anyway, how can I decide whether to continue paying the premium or make the policy 'paid-up' and put the premium into an alternative investment? What figures should I get from the provider?

EdInvestor

Hi Voyager

Post the following and we'll have a look

Guaranteed sum assured
Total bonuses
Surrender value
Terminal bonus (if any)
Maturity date
Monthly premium

Voyager2002

Hi EdInvestor (and anyone else with an opinion),

The target amount (and the amount of life cover, ie claim value on death) is 42,000 -- is that the same as guaranteed sum assured?

Surrender value: 13,061.01;
Maturity date: 3 Feb 2017;
Monthly premium: 61.10;
Paid up Value: 10,304.87;

Projected values (assuming premiums paid for a further 11 years 6 months) range from 29,600 to 43,700. If no further premiums are paid then the corresponding estimates of paid up maturity benefit range from 20,100 to 31,000.

Does this help?

EdInvestor

Voyager

Is that the same as guaranteed sum assured?

No.Is this a unitised policy?

Voyager2002

Hello again,

This is a 'with-profits' policy. I have now received the following figures:

Surrender value: 13,061.01
Claim value on death: 42,000
Loan value (interest charged at 7.5% pa): 7,735
Paid up value: 10,304.87

Projected values:

Possible maturity benefit (assuming a further 11 years and 6 months premium paid) ranges from 29,600 to 43,700

Possible paid up maturity benefit (assuming no further premiums paid) ranges from 20,100 to 31,000.

Life cover is not terribly important to me, and anyway I am in excellent health.

If the policy were made paid-up the premiums saved would probably be used to overpay my mortgage, which is interest-only (but no restriction on repayments of capital) and is currently at 5.05%.

Any ideas?