Endowment policy - cashing it in

"Sandman112" wrote in message news:fg_Ih.3134$ snipped-for-privacy@text.news.blueyonder.co.uk...

should have said its a 25 year plan in total, was for a morgage, but the morgage has been changed since then

"Sandman112" wrote in message news:om_Ih.3148$ snipped-for-privacy@text.news.blueyonder.co.uk...

Is it with profits or unit linked? If it is with profits make enquiries to sell it rather than just cash it in.

What if it's both? Typically these can be split, with units in a managed fund, other funds, and the "with profits" fund.

In my experience it is either with profit policy or unit linked. I have never come across what you suggest not that it is beyond the realms of possibility. IMO if it is a 'joint' policy it will be very difficult to sell so OP may well be restricted to selling.

It's what I got in 1993. From the outset it was split between managed fund, with profits fund, and one or two others. When they brought out their "endowment promise" a few years ago, as an incentive for people not to surrender/sell/make paid up, one of the conditions was that it had to be entirely MF or WP or a mixture of those tow but no others, so I transferred the others into MF.

In message , Eric Jones writes

Yes,a sale is unlikely but many later endowments issued by SL invest in the WP fund and a unitised fund. Technically, there is no reason why it could not be sold but I reckon it would be unattractive to most traders unless they reckon the investment in the w/p element is sufficiently attractive. The assignee could switch the non w/p element to a low volatile fund, such as a property or fixed interest fund, but it would still dilute the potential gain to the extent that the overall potential risk/reward was unattractive.

"John Boyle" wrote

What about considering switching the 'non w/p element' into the WP fund?

We should like to suggest you provide details of your policy on our website

DWW

"Sandman112" wrote in message news:fg_Ih.3134$ snipped-for-privacy@text.news.blueyonder.co.uk...

im pretty sure its a with profits policy ... i phoned a few companys about 6 months ago when i was first thinking about trading it in or selling it, but no-one was intrested in buying it, SL offered me pretty much the same money that i had paid into it at the time, but back to my main question ... does it value go up once it reaches 10 years (april this year) or should i just cash it in just now?

In message , Tim writes

Yes, it would be possible to consider switching.

In message , Sandman112 writes

no

yes

I'm in a similar position, considering surrendering or cashing in a SL policy.

Does any know - will a surrendered policy be liable for CGT?

TIA

In message , Derek Way writes

Beware a site which is not authorised by the FSA and claims to only deal with FSA authorised parties which posts a public advert direct to consumers when not authorised to do so. So along with spelling mistakes and its apparent failure to adhere to Companies Act requirements regarding websites, tread warily.

Didn't there used to be an argument to just make the policy "paid up" then wait for it to mature gaining any terminal bonuses which will be otherwise lost?

Yes, there did, and in general there still does. I'm not sure to what extent the amount of the terminal bonus (which is discretionary, after all) may be negatively affected by having made the policy paid up.

In the specific case of SL, making it paid up loses you any entitlement to benefit from their "endowment promise", but of course so would surrendering or selling it. The difficult thing to decide is whether the somewhat ill-defined EP benefits make it worth while just keeping the policy going (fully, i.e. keep paying the premiums).

Any thoughts, JB?

In article , John Boyle writes

If endowments are tradeable for the potential profits, are whole-life with-profit policies also of value?

I have one taken out 40 years ago which will pay only a few thousand pounds on my death - hardly noticeable among other assets. Would an investor not think it worth buying and keeping payments going? I realise the price would not be much after discounting the risk I might live another 20 years but it would be better than me stopping contributions and losing everything I have paid over the years.

In message , AnthonyL writes

Yes, you are right, there used to be such an argument. Not any more.

In message , Ronald Raygun writes

Yes. the EP is worthless.

In message , news writes

possibly.

It would depend on the value of the with profits element.