I took out a 20 year savings policy in 1996 as part of an incentive to qualify for shares in an insurance company that 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
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