changing term of investment endownment

N

neil

Registered User
Messages
22
I have a 25year endownment policy that has 20 yrs to run. However I would like it to mature in 15 years and pay the same estimated value. Is it possible to change the term and payments amount to achieve this. thanks
 
Why did you take out a 25 year policy in the first place?

Is it a with-profits or a unit-linked policy?

Is it linked to a mortgage?

Brendan
 
Hi Brendan, Its a with profits policy. It was a 25yr policy linked to mortgage. Mortgage has since been paid off but kept endownment on. As to why I took an endownment policy in the first place, I suppose it just seemed a bit more attractive than a straight forward mortgage with thepossibiltiy of upside at the end
 
You can't change the term of it.

You should seriously review whether the policy still suits your needs. It may be that you have paid all the initial charges already and it may be worth keeping on.

If there is a half decent cash value attaching to it now, you might be better off just cashing it.

Check the literature you got at the start of the mortgage. Was it suited to your needs? What sort of fact find did they do? The problems with endowment mortgages were well known 5 years ago, and so they really would have had to make a good written case to show it was suitable. If it was not suitable, then you may have a case for mis selling.

If there was any mention of you paying off your 25 year mortgage within 5 years, then a 25 year endowment should not have been sold to you.

As a matter of interest, what company is it with? Can you provide the figures? What you contributed to date? What is its current encashment value?

Brendan
 
Brendan, there was every chance of the mortgage being paid off within the 25 years and this was mentioned to the broker. I was 29yrs old and it was a one bed apartment so was highly unlikely I was going to keep it. There was no fact find, I was just given the 2 options, endownment or straight mortgage. I took it out via Irish Mortgage Corporation and the policy is with Friends First. Payments are €238 per month
 
Hi there, I am in the same boat with endownment only the same value as I put in it. I just have to continue until I have to have the money or it is got to a value where I am happy to take the profit. I am 11 years into it now so maybe a great tax free sum in a few years. Maybe keep up the payments of reduce it is you can't pay E238. Good luck with it.
 
neil,

Does your policy document mention a 'Basic Sum Assured' or does it refer to a 'Guaranteed Minimum Growth Rate' ?

gar32,

What company is your policy with?
 
Selling the policy on might also be an option and possibly a more prudent one than either keeping it up or cashing it in.
 
My police is with friends Frist but they say because it was linked to Mortgage I can not sell it on only cash it in. I am just continuing until I need the money. Would it be better to put money off my mortgage its fixed at 4.2 until Oct 07 or wait until starts growing fast then cash in?
 
By any chance is the policy still assigned to the financial institution that you took the original mortgage with?

If it was my policy I would keep it to maturity. Not that it matters, but the current net yield per annum on a policy maturing, in 2006, after 25 years with this company is 9.20%

But, if as you say you are just continuing for the sake of it then that's a non-runner.
 
Only 16th years to wait. Maybe a rainy day before that but am sure a woemn will come along & talk me into useing the money for some thing. Thanks for advice!!
 
Bear in mind that some people who are stuck with under performing and/or high charges endowment policies might be better of switching to a regular annuity/repayment mortgage and then separately deciding what to do with the endowment policy (e.g. cash in, sell on, keep up contributions etc.). There is always an element of risk involved in depending on an endowment policy to pay off the mortgage particularly when the original projections may have been very optimistic and/or the premiums are inflated by high charges etc. At least with an annuity mortgage you know for sure that the mortgage will be cleared at the end of the term as long as you keep up the repayments. There is no such certaintly with endowment mortgages.
 
I have endownment as a stand alone investment now. its value the same amount as I paid in so waiting until rainy day or at least until I have made 10% return on investment. Thanks for advice. Enjoy
 
What charges apply? What sort of endowment policy is it (e.g. With Profits, unit linked etc.)? Are you still making payments into it?
 
You must log in or register to reply here.
Back
Top