Hi experts,
I have an endowment policy which is worth at the moment around £30,000. Its up in 5 years time and is supposed to pay out £73,800.00 (Im not using it to pay off the mortgage as I changed to a repayment so years ago). I pay £111.65 a month and that covers life insurance for partner and myself.
The company has written to me stating there will be a shortfall (HA really?). They state that within the terms of the policy if I take their advice they will guarantee the £73800.00 payout if I pay an additional £409.76 for the next 5 years.
So in my simple mind I will have paid £30,000.00 + ((£111.65 +409.76)*60) =£61,284.60
When they pay me £73,800.00 that will be a 20.4% profit (taxfree). or am I missing something?
In this climate that doesnt seem a bad deal? I can stop and cash it in at any time withoutany penalties as well.
I have an endowment policy which is worth at the moment around £30,000. Its up in 5 years time and is supposed to pay out £73,800.00 (Im not using it to pay off the mortgage as I changed to a repayment so years ago). I pay £111.65 a month and that covers life insurance for partner and myself.
The company has written to me stating there will be a shortfall (HA really?). They state that within the terms of the policy if I take their advice they will guarantee the £73800.00 payout if I pay an additional £409.76 for the next 5 years.
So in my simple mind I will have paid £30,000.00 + ((£111.65 +409.76)*60) =£61,284.60
When they pay me £73,800.00 that will be a 20.4% profit (taxfree). or am I missing something?
In this climate that doesnt seem a bad deal? I can stop and cash it in at any time withoutany penalties as well.