endowment policy

DELBERT

my parents have an endowment policy that is due
to mature next year, the company they have it with are saying its worth £9500 know and when they took the policy out they were told it would be worth £12k, they are wondering if it is worth cashing it in know with a companys who purchase these policys early or to hold off and complete with current company until next year.

if someone can shed any light on this endowment policys they would find it very helpful

dunstonh

Is it a savings endowment or a mortgage endowment?

Rate of return is not grounds for a complaint. 1970-1980 you would quadruple your money, 1980-1990, you would triple your money and 1990-2000 you would double your money. See the trend...

So, when past performance figures were shown, they would have shown higher figures. However, there is that magic phrase (or variations) we all know now "past performance is no guide to future returns".

Now, if they can prove that they were told it would be guaranteed to pay out at least 12k, then they do have a case.

A policy due next year is unlikely to be wanted by a TEP company. Surrender may not be cost effective. Holding to maturity may be the best option. Without figures, no-one can be sure.

FOSman

Hold on to it. Markets are not going to crash over the next year, plus, there will be terminal bonuses added to it.