cashing in an endowment policy

[205man]

i have an endowment poilcy with is worth a few grand so im thinking of cashing it in.

has anyone done this if so what are the pros and cons of doing so?

ive already changed my mortage so not worried about that. im just thinking the cash would come in useful at the moment

alan

 

[AndyMac]

I cashed mine in about 8 years ago, got slightly more than I'd paid in which was a bonus, but it does depend on the type of endowment policy.
Just call the company up and they'll give you a quote for what it's worth. There are companies out there that will buy them off you, but again it depends on the policy. Some policies have large settlement fees, so selling it on makes more sense, than cashing it in.

 

[motorbikez]

Try one of the specialist companies you could get up to 30% more than your insurance co will pay.
It depends on how long it has been running when its due to mature and what type of policy it is.In general if it is a with profits policy you will get more than (a unit linked policy,that is one tied to equities).

Another option worth trying is borrowing from your existing insurer against your policy which some will do the interest rate is usually1% above base.
Best of luck.

 

[205man]

iv ebeen paying into it for about 19 years now, i changed my mortage about 4 years ago but didnt stop the payments going to my endowment and now im thinking i could be using the money saved to do some things to the house etc

ive asked them for the paperwork to be sent to me, theni can decide if i want to take it further

alan

 

[AndyMac]

Probably worth keeping it going if it's only got 6 years left and increase the mortgage to pay for home improvements. The interest on the mortgage will be far out weighed by the benefit of letting the endowment mature.