my endowment question

katevq · 16 May 2008 at 11:20AM

Hi all,

please can you help me with my endowment quetion. I took out the endowment in 1997 to cover a mortgage of 31,500. I have since switched the mortgage to repayment and have payed it off.
I still have the endowment running as i never got round to doing anything with it. I can afford the monthly payments and have no family and have other income protection/illness policies so don't think i really need the life cover.
The details are as follows.
start dte may 1997 mortgage 31,500 payment 49.00/mnth 25 years.
Resolution phoenix 50% withprofits series III and 50% managed life fund
current plan value £56628 0% annual bonus 07/08
projection maturity 4%-18300
5.5%-22100
7.5%-26700

Any thoughts on keeping this running/cashing in would be greatly appreciated. thanks in advance

EdInvestor · 16 May 2008 at 1:18PM

Please post the surrender value oif the policy (ring up and ask).

katevq · 16 May 2008 at 2:17PM

The surrender value is £5967

EdInvestor · 16 May 2008 at 3:30PM

katevq wrote: »

.
Resolution phoenix 50% withprofits series III and 50% managed life fund
current plan value £56628 0% annual bonus 07/08
projection maturity 4%-18300
5.5%-22100
7.5%-26700

If you cashed it in and put it in an ISA @6% return, also paying in the premiums to maturity, you would have 26,246 which would be bettere than their projection (but the latter includes life cover).

You could consider switching the 50% that's in the WP fund into the managed life fund, which looks to be a reasonable performer (which company was this with originally?) Then keep an eye on it and see how it performs - and also waht forecasts they come up with.