Hi,
Back in May 1994, my wife and I bought our first house and took out an endowment policy to cover for £43000.
Ten years down the line, we have been advised that the policy is currently running at a £13000 shortfall and we have taken extra on a repayment loan to cover this shortfall leaving us with a target to reach of £30000.
Just last week, we made a visit to out IFA who advised us to cash in the policy (alternative arrangements would be made in due course to cover for the £30000).
The surrender value from L&G is currently less than what we have paid in to date and our IFA advised us not to sell the policy back to the L&G as we could maybe get a higher pay out from other financial institutions.
Two questions really ...
1) Why would the current surrender value be less than what we have paid in? I am aware that investment can rise and fall but how can it be less than what we have paid in?
2) Can anyone recommend the best companies to approach in the UK with regard to selling the policy to get the highest amount possible? Also can someone please advise why these companies can offer more?
TIA.