Surrender Endowment policy?

Hi, I'd appreciate any advice.

When I lived in the UK and bought my first house, I took out an endowment policy with Countrywide Assured, which is due to mature in April 2019.

In 2009 I stopped making additional payments into the policy, but didn't cancel it, and it has been growing a little with what had already been paid in.

A couple of years ago I lost my full-time job, and now I'm only working part-time and could do with the money.

I think I know what the options are with regard to this policy, I think they are:

1. to 'surrender' the policy - and I'm told it's worth about £30k
2. keep it running - they say it 'should' grow at about 6%, or
3. I also saw that some organisations will buy and takeover active policies

I'm not sure if there are any other options, or if not, which of the above might be best.

Also I'm wondering should I look into being 'mis sold' this policy as it was supposed to grow to £70k and even if I had kept up the payments in wouldn't have got near. Any ideas whether I should go down this route?

Also, in the event of surrendering (option 1) or selling it (option 3) what's the best way to get the sterling over to Ireland?

Thanks in advance for any help

You really need to take advice from an independent financial advisor in the UK.

Countrywide doesn't operate in Ireland, so it's unlikely you will get meaningful information on this site.

The UK Financial Ombudsman gives very good guidance on his site, about how he makes decisions on cases like these.

Brendan

But for the non Countrywide-specific aspects of my question, would you be able to help with any advice about whether it's best to surrender or keep unit-linked endowment policies?

The decision whether to cash or not depends on the bonus policy and practice of Countrywide.

If they pay a high termination bonus, then it's probably much better to hold onto termination. I am sure that this must be an issue which is widely discussed on similar boards in the UK.

You should not base your decision on one person's experience with a different company in a different country at a different time.


Brendan

Your policy is almost certainly unit linked rather than with profits and you almost certainly can't sell a unit linked policy in the second hand market.

You have already made the policy "paid up" by the sounds of it.

If you need the money, you need the money and that should drive your decision process.
I.e take the surrender value now (a bird in the hand) or leave the investment invested.

If you do surrender the policy and bring the proceeds into Ireland you will need to confirm with Revenue here if you have a tax liability on any gain.