Endowment help....

tiggerpud

I have an endowment and not sure whether to surrender or not... We have other means to pay off mortgage so that is of no concern. We intend to use money for a big holiday in about 5 years. Details are:

Company: Norwich Union
Conventional with-profits minimum cost endowment policy
Started Jun 1987, matures Jun 2012.
Premium: £30.12 per month
Current SV = £14207
Current emv @ 4% £18200, 5% £19000, 6% £19800.
Guaranteed Death Benefit of £25000.
Endowment Sum Insured £8600
Total regular bonus £5980.25

What do ya reckon?? Surrender and invest or wait?l

Lesley

dunstonh

What is the terminal bonus accrued to date?
Is that terminal bonus included in the projections (NU do it included and not included with different versions)?
Is there any mortgage promise value (2001 and 2004 statements will give you the value you have)?
Are your values up-to-date (i.e. in last month and not before last bonus announcement)?
Which NU with profits fund are you invested in?

tiggerpud

No terminal bonus mentioned - and the lady in India didn't seem to even know what it was! (I tried using term additional bonus, final bonus & terminal bonus with no luck....). Values are all as at 27 May. Not sure about mortgage promise - I never keep the bonus statements.... The fund is the conventional with-profits fund not the unit linked one.

I'll give them a ring on Monday and see if I can extract some more info....

Lesley

tiggerpud

I'm told it does include final bonus and there is no mortgage promise....

EdInvestor

tiggerpud wrote: »

Current emv @ 4% £18200, 5% £19000, 6% £19800.

If you cashed it in and put the s/v in a deposit account at 6% net or used it to repay a mortgage @6% , also paying in the premiums to maturity you would end up with 19,562, that's for taking no risk.

Very little different from the top NU projection, also 6%, where you are taking a risk.

If you invested the money in your stocks and shares ISAs in good funds you ought to be able to do significantly better than 6% - and you would pay no tax on the investment, unlike the endowment.

On the other hand the endowment includes free life cover.

Have you tried selling it?

https://www.apmm.org

tiggerpud

I've just had an offer back of £15751 from AAP. Now I'm thinking perhaps if they are willing to buy then perhaps it's best to hang on to it as they wouldn't be interested unless it was worth keeping!

I guess at the end of the day it's all a gamble.... I'll wait and see if anyone else offers higher.

Lesley