There are still millions of endowment policies out there that have been in place for many years now.

You may well have thought about surrendering (selling) the policy but even in the fast changing world of investments it is not always clear whether you should get rid of these older plans.

There are many factors to take into account before you should even think about surrendering an endowment policy. Some of the most important include:

  • Whether you need the money
  • How well the plan has performed and is likely to perform in the future
  • Any bonuses payable in the future
  • Any penalties payable upon surrender
  • Any tax payable upon surrender
  • The current charges being paid on the plan in comparison to alternative investments e.g. an ISA
  •  The fund choice available within the plan

Thinking about all of these considerations will help to decide whether you should surrender your endowment policy or keep it until maturity. Unfortunately every endowment policy is different and so there is not one clear answer either way. Sometimes it is best to keep it, sometimes it is best to surrender it.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on jaskarn@investorprofile.co.uk