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Endowment - 15 years in - cash in or leave for another 10 years ?

(8 Posts)
Shortcircuit Fri 08-Aug-08 09:07:19

I've let my endowment slip (DD slipped) & have had a letter stating I need to pay £495 to bring up to date.
At present the predicted without profits in £10k & if I cashed it in today, it would be worth about £6800 (a bit less than I've paid in)

I don't know what to do - should I bring it up to date or cash in ? (i'm in a particulary bad descision place at the mo)

BTW it's not to pay off a mortgage (it was originally though - to pay off a £31500) I kept it going & got a repayment mortgage in 1999.

SpandexIsMyEnemy Fri 08-Aug-08 09:08:21

tbh i'd see a IFA about it.

saltire Fri 08-Aug-08 09:16:15

We saw an IFA, he advised us to cash ours in - it ahd been running for 15 years, and we got £11,000, 10 k of which we used to reduce the mortgage and switch the remainder to a repayment.
Unfortunately for us we couldn't sell ours on the TEPs market as ours was "with profits unit linked". if its just a with profits then they can be sold

mumthatworks Wed 20-Aug-08 20:56:37

Hi I am a Mortgage Adviser who in a prior life used to specialise in complaints about endowment policies. Basically you have a few options...either you can make the back payments and then continue to invest in it but to be honest it probably isnt the best idea with the majority of endowments as you arent guaranteed the return unless you have a full with profits guaranteed endowment and most tend to be invested in unit linked funds. The other option is to make it 'paid up' in which case you wont have to make any more payments and the endowment company will just deduct the cost of the admin charges and the life cover element of the policy each month...beware though your existing units can still fall. The final option is to cash it in early and just pay it off any existing debts or mortgage....I would go for that option unless of course you are unable to get life cover elsewhere. Life cover is pretty cheap nowadays and even though you will be older it is probably cheaper to have a seperate life policy if you need the cover. Advisers tend to be wary of advising you to cash in endowments simply to cover their own bums compliance wise but the bottom line is unless you have the old fashioned type which 99% you havent if it is only 15 years it in and get out of it asap

Good luck xxxxx

nkf Wed 20-Aug-08 21:10:35

I'm turning this over in my mind too. Mine has five years to run. I'm going to take some mortgage advice but I am looking at making it paid up. Probably a bit of a halfway house decision. I wouldn't pay more into it.

PestoMonster Wed 20-Aug-08 21:12:48

You'd be mad to cash it in early, you'd miss out on the Terminal Bonus.

nkf Wed 20-Aug-08 21:13:33

Is that the same with making it paid up?

PestoMonster Wed 20-Aug-08 21:27:32

You won't get your terminal bonus unless you keep it going until the end of its term. So you'd miss out if you make it paid-up now.

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