20 year savings policy value - continue contributing, stop contributing or cash in?

[eugene]

I took out a 20 year savings policy in 1996 as part of an incentive to qualify for shares in Norwich Union, which was being demutualised. I have continued contributing since then. In 1996 the monthly euro contribution value was €38. That has risen since then to €68 per month currently. I have contributed €7,900 to date.

I sought a current valuation recently and was told that if I cash in the policy now I would receive €6,810. I asked what the policy value would be in 2016 if I simply ceased contributing from now on? They give me an estimated valuation of €9,310 in December 2016. This seems like a terrible return to me.

The question in my mind now is should I simply cut and run and take my €6,810 and invest it somewhere else (possibly in an ETF), stop contributing to the policy but leave the current some in that until maturity, or keep contributing until 2016?

I would be grateful for any opinion.

Regards

Eugene

 

[fogart]

Re: 20 year savings policy value - continue contributing, stop contributing or cash i

I have a 20 year one myself and a Royal Liver policy.They should be able to tell you the very minimum that would be paid out if you continue to pay premiums at maturity as it is probably one of those carpet bagger policies taken out in 96.Values are down at the moment and estimates are based on theose poor values.Stay where you are, stop escalation/indexation if you want.You probably made 6k from the shares though if you bought and sold the max like I did.