Maturing endowment policies

[Mary-Christmas]

Years ago it was sensible to hang on to endowment policies because of the terminal bonuses. I have one maturing in Jul 2012 and two in Nov 2013. Would it be worth cashing them in now and paying off the mortgage or wait and hope that the bonus will be worth something? Thanks in advance for any answers.

[DEN53]

Mary - we have one maturing this August - we keep getting letters telling us it won't be the full value, but I think if you cash them in, you lose quite a bit. Plus I think they charge a fee.

[squarebear]

I would really hang on to them for the full term if you possibly can. The difference of payout can be huge.

[R1Geezer]

assuming they are "with profits" then there is huge lump in the terminal bonus, I just had one mature and approx 35% of the total payout was the terminal bonus. So unless you have a very hig mortgage rate or other pressing financial reasons then you should let them run their course.

[Mary-Christmas]

Thank you all for your answers. There is redundancy looming and I have had a surrender valuation done which will cover the mortgage, just. R1Geezer, they are with profits and I am going to try and hold out. Thanks again all.

[DocHH]

Definitely hold out to maturity date before cashing in any Endowment Policy! That will optimise returns.

[Captain Spod]

Sorry I'm a bit late.. DO NOT CASH THESE POLICIES! If you need cash now, you are very likely to get more by selling them to someone who will hold them to maturity. look for 'Traded Endowment Policies'

[Mary-Christmas]

Thank you all for your answers. I will do my utmost to keep them. I intend to get another job of an evening to make sure I can keep them going until maturity. Best wishes to everyone. x