Endowment policy question.

JohnnyG · 8 Jun 2008 at 17:04

I have an endowment policy in to which I've paid £90 per month for 10 years and currently it's worth @£12k which means that it's only added @£2k and is due to mature in another 15 years.
I no longer need the life insurance element of it but I can't remove that and pay less according to the company it's with.
Would it be financially beneficial now if I redeemed it and put the £12k in to a decent savings account then paid the £90 straight in to that too?

Energize · 8 Jun 2008 at 18:01

www.moneysavingexpert.com

MajorMaccas · 8 Jun 2008 at 18:37

I'm well endowed

I'll get my coat.

Ben M · 8 Jun 2008 at 18:39

Working out what interest the endowment is likely to return, and weighing that up against the interest offered by a savins account/ISA is the only way to find out which is best.

Mirage · 8 Jun 2008 at 18:58

If you surrender your policy you'll end up getting less than what it's worth. Chances are you'll be able to sell it on for more than you can surrender.
I used to work in the Endowments Complaints department of one of the UK's largest insurance companies and saw a lot of this. One this I can tell you however, is that endowment policies pick up speed and gain most of their bonus towards maturity.