endowment, surrender or sell? help!!

cookielass

hi,
I have an edowment poilcy with norwich union which is now high risk of not meeting target. Am going to change mort all to repayment and wish to either sell or cash in this endowment. Need advice as to where to go, how much to expect etc.

Target amount £34300
monthly paymetnts £59.82
Surrender value £5783 22/8/05

not sure what else u need
cheers,

dunstonh

I have an edowment poilcy with norwich union which is now high risk of not meeting target.

Just because its a high risk using the projections, doesnt mean that it will not hit it. That alone shouldnt be used to decide whether you should keep it or not.

Is the policy unit linked or with profits?

Your options are:
1 - keep it
2 - keep it but switch funds
3 - Make it paid up
4 - Surrender it
5 - Sell it (only if with profits).

Depending on the charges, funds available, penalty on surrender, life cover cost (compared with replacement life cover for repayment mortgage), type of CI cover, if included (older CI cover tends to be better than modern versions).

Depending on what version, NU endowments can actually be quite good (some can be quite poor though - which is why nothing should be assumed).

The sort of information needed will be posted by Ed shortly. In addition to that and already mentioned, things like increased allocation rates later in policy, surrender free penalty dates, ongoing charges could also impact.

e.g. a policy with a 103% allocation after 10 years is effectively getting 3% growth before you start. This is not taken into account with projections. I have seen some as high as 105.25% in the past.

EdInvestor

Hi cookielass

Let us know the Guaranteed sum assured, bonuses so far and maturity date if it is a WP policy.

If unit linked, what is the projection @ 4% and 6%?

cookielass

hi,
matures 2021, term being 25 years.
not sure about bonus, where would i find this info? it is wp.
sorry im not very "up" on this sort of thing!
please bear with me!!

cookielass

projection at 4% is 21100, and at 6% is 26700

EdInvestor

cookielass wrote:

not sure about bonus, where would i find this info? it is wp.

Should be on your annual bonus statement.