From: john boyle 
Newsgroups: uk.finance
Subject: Re: Endowment - surrender, sell or keep?
Date: Mon, 28 Feb 2005 21:46:32 +0000

In message , Alan Paterson 
 writes
>My '£70K' endowment policy from Norwich Union has about 10 years to run, and
>on current projections will mature at c.£45K.

I've snipped the rest because my main point is that the projection means 
nothing at all, and bears no relation to reality. It will be based on 3 
rates of growth typically 4, 7 & 9%.

If it is a 'with profit' policy the ring NU and find out what the 
current bonus rate is, I think you will find it is about 1.5 - 2.5% and 
that is on the *basic* sum assured (not the amount of life cover) which 
will likely be less than the policy is already worth.

If you need life cover and are in good health so you can get it cheaply 
elsewhere, then sell the policy, buy some cheap Decreasing Term 
assurance and invest the difference in premiums into a decent stock 
picking monthly contribution equity ISA, avoid a tracker. Go for a 
decent fund manager such as Jupiter, Fidelity, Invesco, Gartmore etc., 
and choose one of their best funds, or go for a spread via a supermarket 
such as Skandia etc.,

DONT buy a tracker, Take no notice of the 'charges' thing everybody goes 
on about, look for absolute performance AFTER charges. I'd rather pay a 
wodge of charges and still come out on top, then buy cheaply and be 
mediocre.

-- 
John Boyle