Some advice re selling or surrendering an endowment policy please

[thisisallconfusing]

name changing regular as don't like talking money under my chat name

we have an endowment policy, we have just checked the surrender value, and it is enough to pay off our debt.

so the question is do we surrender it or sell it?

has any heard of the Association of policy market makers...www.apmm.org. ?

don't want to just start giving out info willy nilly over the phone to organisations that might not be that great.

so obviously, if we do sell /surrender it, we need have no lump sum coming at the end of the mortgage. although we could save some money every month, but there does not seem to be a decent savings account around.

the endowment is only for part of the mortgage , the bulk will be paid off.

i am due a lump sum via an inheritance, when a property is sold, and i could either invest that lump sum or pay some more off the mortgage now.

it's all so confusing ! hence my name

any advice most gratefully received.

thank you

sorry,could pay a lump sum off the mortgage when I get the inheritance, not sure when that will be. DH reckons would be better to finish the home improvements that need doing to increase the value of our house, as that is a better investment

I know it's really boring, but anyone?

forlorn bump

OK You really need to get independent financial advice. In the meantime, things to remember - if you surrender the endowment then you will need to ensure you arrange extra life cover - which will be a bit more expensive as you are older. Check out the FSA website which has a useful leaflet on selling endowment policies.

BTW You should not really be thinking about investment/saving whilst you have large debts especially with rates as they are.

HTH

I agree you should get some independent advice.

Generally you will get more if you sell rather than take the surrender value.

Now isn't really an ideal time to be surrendering or selling as the markets aren't doing so well at the moment though and you may be better waiting until they have recovered.

In my eyes it's the savings if you pay off your mortgage now and the saving of not paying your endowment premium, against the potential gain of your endowment in the long run. The answer you will only know when you find out the maturity value of your endowment. Are you prepaed to gamble in the hope that you get a good maturity value on the endowment which will outweigh the costs of the savings? Alot will depend on your attitude to risk, your current financial circumstances and whether you can afford to have apunt on the suspected maturity value.
In most cases I tell people you are better off clearing your debts and if you have disposable income left over then to consider savings, pensions etc.
There are plenty of reputable companies about that will sell your endowment for you.

Interesting article although a couple of years old

are their any penalties to surrendering your endowment now?