I have a endowment policy that was supposed to pay off the mortgage of 30k.

It is now 23 years old and has a cash value of just 16k with a guarantee of just 18k

given that the markets have collapsed now is their any point in hanging on to this policy as any final bonus will be nil given the current situation and it cost me £50 a month.

I have paid off the mortgage anyway.

your thoughts ??

Sounds similar to my dialemma - £30k - worth £16k - 4 years to go - could you possibly be another Phoenix endowment mug ?

I have asked them what happens if I FREEZE payments - ie) Will the terminal bonus still be paid and how much it is reduced by - annual bonuses of around £10 pa with payment of £840 pa

I have received compensation for misselling of £6600 though - have you ?

TWEE.

INFO IF YOU DONT MIND,,

I HAVE PHEONIX ENDOWMENT WITH SAME PROB. ITS DOWN BY £15K ON PROJECTED FIGS.

MATURES IN 2011.

BONUS LAST TERM ONLY 0.25%

ANY ADVICE / OPTIONS WELCOME.......REGARDS

Splodge

SNAP!! I'M IN THE SAME BOAT.. WHAT WAS YOUR ADVICE?? MY £15 SHORT ENDOWMENT MATURES IN 2011 WITH ONLY 0.25% BONUS LAST YEAR I DONT KNOW WHATS BEST TO DO?? PREMIUMBONDS MAYBE??

GREATFUL TO RECIEVE ANY INPUT (FROM WHOMEVER)

THE OPTIMIST

I will let you know my conclusion when i hear back from Friends Provident. As i see it the only way these policy's were ever going to work was with a large final bonus. Now it looks unlikely that there will be a bonus at all. Given that these sorts of investments seem to track the market and that is in a mess i cant see any real reason to hold these endowments unless a/ bonuses increase by more than .25% or b/ the final bonus is going to be more than the policy would have increased had you transfered the cash value to a bank at say 5% for the remainder of the term.

As for premium bonds !! well wouldn't :-)

I will post here when i have made a decision

Cheers

Paddy

Paddy,

When you say your bonus is expected to be 0.25% - I assume (hope) - that you mean 25%

Cos 0.25% of £30,000 is less than worthless as a terminal bonus

My thanks to all taking a notice in my situation.

CLARIFICATION 0.25% ... I was told by Company that intead of all the projected figures on the polocy ie Growth Rate 3.5%; 4.25% 6.75% depending on markets the haveonly een paying 0.25% for the past two years.

OPTIONS

Company said I could 1] continue with payments; 2] stop paying and freeze policy till 2011 mature date, 3]sell policy on to an other, 4]surrender policy for todays value.

No options for me top top-up, add to, or start another 5yr policy to add too.

Full letter of explination to follow - should be here today, so I'll try to go through the 'gob'l-di'gook and update this info.

On a personal note I feel very agreeved; my last policy in 2000 paid out £9k less than value, this one looks like another lossof at least £15k - NOT FAIR!! All I can say is BOHICA

The Optimist