The simplest way to find out is to phone up the life company and ask.
Rob Graham
- posted
20 years ago
Re: Endowment Policy. Make paid up?
Loading thread data ...
- Vote on answer
- posted
20 years ago
Directly there are probably no costs, but indirectly you will get a much lower payout at maturity. Ask the insurance company to tell you what the difference might be. They will also tell you the surrender value and this might be an option (but this could give rise to a tax liability).
Also if you policy is really old (pre-1984 or something), making the policy paid up could lose qualifying status on your policy and this could give rise to a tax liability.
If you were sold your policy by an independent financial adviser you can always ask him or her - but they might charge you for their time.
Otherwise the best bet would be the insurance company as another poster suggests.