Wots all this?…buying up endowment policies about?…?
Thursday, March 11th, 2010 at
12:03 am
because there has to be a reason why large companies are buying them up!…A friendly financial advisor has told me that you should NEVER surrender it?…for example…a 25yr endowment policy takes appx.8yrs to pay off service charges?…then gives little or no gain…for the next 15yrs?…THEN in its final 2 years…JACKPOT!…it increases rapidly as bonuses and things all start to gather up?…and you can also "transfer" it to a new home purchase at any time?…IS THIS TRUE?…are we "selling off" a good investment in the future?…for a couple of ££ now?…
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yes they are a really good long term investment and i mean long term - where you get taken if you have a 20 year and you cash out say before year 14 or 15!!!
It depends on the terms of your policy although in certain cases it can really double in amount if you do not touch it after a certain period after its maturity. However, sometimes the value is no longer that much when you factor in inflation. For example what do you think would be the value of $1M 30 yrs from now?
In any case if you think about the amount you invested in the policy vs the return it might still be worth it. The process also forces you to save for a future need.