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January 2007

Q&A - Alan Ball

Question: I was thinking of unloading my endowment policy. What are the issues surrounding this and how do I get the best deal?

From KS Kintore.

 

Answer: Answer: Many investors are currently unhappy with the projected returns on their endowment policies and are considering alternative solutions to repay their mortgages and also for long term savings requirements. In the past three years investment markets have in general performed very well, yet most endowment companies have not passed these gains on to investors by way of increased bonuses. There are numerous aspects you should consider when looking to "unload" an endowment prior to the end of term including; potential penalty imposed by the endowment company for early surrender, personal taxation and loss of life cover. Selling or surrendering an endowment can be a complex area and you should speak to a qualified financial planner for guidance.

Alan Ball is a financial planner with Acumen Financial Planning. He can be contacted on 01224 573904.

 
Companies in the Acumen Group include Acumen Accountants and Advisors Limited, Acumen Financial Planning Limited and Acumen IT Consultancy Limited. Acumen Financial Planning Limited are authorised and regulated by the Financial Services Authority. Acumen Accountants and Advisors Limited are registered to carry out audit work and are regulated for a range of investment business activities by the Association of Chartered Certified Accountants but are not authorised and regulated by the Financial Services Authority. Acumen Financial Planning Limited, Registered in Scotland number 215343, VAT Number 894 6221 94. Acumen Accountants and Advisors Limited, Registered in Scotland number 153885, VAT Number 894 6221 94. Acumen IT Consultancy Limited, Registered in Scotland number 284749, VAT Number 859 474862. Acumen Holdings (Aberdeen) Limited, Registered in Scotland number 215503, VAT Number 894 6221 94. Registered office, Commercial House, 2 Rubislaw Terrace, Aberdeen, AB10 1XE.