Endowment compensation, What's a good deal?

martnal_2

I have had compensation offers from both Barclays and Abbey. One offers to put me on a par with a repayment mortgage, the other offers to buy the endowment back. How do I tell if either of these are good deals?

I have read many articles on how claims should be handled, but I can find nothing that tells me if I am getting a good deal? I've also read that I might be better off continuing the endowment policies or even selling privately.

Can anyone guide us through this area?

Alice.

FOSman

Get an RU89 calculation done. This will work out if you are better off having taken an endowment in comparison to a repayment mortgage. If there is a loss, then by compensating you, you will be in the same position had you taken a repayment mortgage. All that is left for you to do is surrender the policy.

If it shows no loss, it means that you have done better. Then it is up to you whether you stick with it.

Either way, they SHOULD NOT TAKE NOTIONAL SAVINGS INTO ACCOUNT. Hope this helps.

EdInvestor

Hi martnal

Re surrendering the policy or not, post a few figures so we can take a look.

If the policy is With Profits,

Guaranteed sum assured
Bonuses so far
Surrender value
Monthly premium
Maturity date

If not WP

Current value
Surrender value
Projected returns @4%,6%
Monthly premium
Maturity date