From: "No Flipping" 
Newsgroups: uk.finance
Subject: Re: Endowment Policy. Make paid up?
Date: Sun, 20 Jul 2003 19:29:07 +0100


"Adrian"  wrote in message
news:w3wNa.2163$kR6.14329969@news-text.cableinet.net...
> Are there any costs to stop paying premiums and making my endowment policy
> paid up?
>
> Long ago I switched my mortgage from it, but have continued to pay
> £40/month. As a 40% tax payer I think I should have been much better
paying
> this into my personal pension, but better late than never!
>
> Thanks,
>
> Adrian.
>
>

Directly there are probably no costs, but indirectly you will get a much
lower payout at maturity.  Ask the insurance company to tell you what the
difference might be.  They will also tell you the surrender value and this
might be an option (but this could give rise to a tax liability).

Also if you policy is really old (pre-1984 or something), making the policy
paid up could lose qualifying status on your policy and this could give rise
to a tax liability.

If you were sold your policy by an independent financial adviser you can
always ask him or her - but they might charge you for their time.

Otherwise the best bet would be the insurance company as another poster
suggests.