Endowment Advice Please

elvina

Hi

We have 2 endowments to pay off our mortgage. One is due to end in 2013 and one is due to end in 2018, the mortgage ends in 2019.

1 For the 1st one we have been made an offer by Sun Life of Canada due to mis selling. Should we accept and pay off some of the mortgage or risk holding on to the policy to see if we get a better outcome at the end. We cannot really afford to take any risk.

2 Do we accept the offer or try selling the policy through one of the companies buying policies? If we sell the policy are we liable to pay tax?

3 The 2nd policy is also showing as under performing. Should we cut our losses on this one and end this one early then invest and/or pay off the mortgage early then put the money we save on the endowment payments into a good savings account in the hope of making up the shortfall at the end?

Any advice that anyone can give would be much appreciated.

Thanks

EdInvestor

Post some more info about the endowments

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly payment
maturity date
maturity forecast
Interest rate payable on mortgage

You may like to contact these people to see what they will offer you for the policies:

https://www.apmm.org

It should not be necessary to surrender the policy at the same time as accepting the misselling redress money.

elvina

Hi EdInvestor

Sorry I didnt know what info to put in so here is what you asked about

Provider - Sun Life of Canada & Scottish Life
Guaranteed sum assured - £20650 & £27250
Declared bonuses - 4536.86 & I dont know, in April 2008 I received a letter saying that the total plan value as at 15/4/2008 was £6403.05
Surrender value - £10366.33 & I havent had the second one yet
Monthly payment - 28.20 & 41.48
maturity date - 30.6.2013 & 14.04.2018
maturity forecast - I dont know
Interest rate payable on mortgage - 2008 4.94%, 2009 5.79% & 2010 6.29% at which time I will move the mortgage to another package.

Many thanks

Elvina