Endowment Policy - what to do?

Crannog

Hi there

I wonder if any of you could help me.

5 years ago I changed from endowment to repayment mortgage but kept up the payments on the endowment policy. The mortgage provider released their interest in it.

So, I have an Irish Life endowment policy worth €34k but I am wondering what is the best thing to do with it.

Any advice would be appreciated.

homer911

How much have you paid into it. How long have you had it and how long does it have to run?

You will need to consider

1. The total value of what you have paid in
2. The funds that the money is invested in
3. Is there life cover attaching to the policy
4. The charges on each contribution being made and any annual/ongoing charges
5. Could you put the value quoted to better use ie pay it off your mortage or reduce other debt
6. Would you consider accelerating your mortgage payments by redirecting the 'premium' that is being paid to the policy
7. Do you have this fund earmarked for some other funding requirement ie educational school fees

Request as much information as you can on the plan and then you may be in a better position to make an informed decision.

Crannog

Thanks a lot.

I took out the policy in 1994 I think.

The total value of what you have paid in. I will check this out - thanks

The funds that the money is invested in I haven't a clue (Irish Life manage the policy) I will ask the sensible question.

Is there life cover attaching to the policy Again I don't know but I don't think so. I will find out

The charges on each contribution being made and any annual/ongoing charges You guessed it. I don't know. BUT, I will find out.

Could you put the value quoted to better use ie pay it off your mortage or reduce other debt This is the bit I could do with some help with. I have been reducing my repayment morgage so now there is only €56k left.

Would you consider accelerating your mortgage payments by redirecting the 'premium' that is being paid to the policy I would but I am unsure as to the wisest thing to do.

Do you have this fund earmarked for some other funding requirement ie educational school fees I suppose
Here is a list of stuff I will need the money for:

• I don't really have a pension to speak of (I have one from a job that I paid a small amount into for 15 years. It's only worth €60k but with 23 years to grow 'til retirement. I am now a sole trader with a modest income and I don't have another pension.)
  
• I have €20k savings in case I get sick and can't work for a while. This seemed a better solution than the various policies that had so many loopholes and very little benefits.
  €16k is getting 5% and the rest is available for emergencies, training etc.
  
• Single glazed windows on house will have to be replaced at some stage.

Thank you so much for helping me to realise what information I will need to make an informed choice. If you have comments based on the above I would really appreciate them.

broker2008

Not sure when you got the value but bear in mind that if the fund that the money was invested in is in a with profits fund or managed fund, the value was a lot higher this time last year or 6 months. That needs to be considered also as the potential of increasing again may or may not be limited. I would recommend that you get professional advice from an agent or broker that has involvement in not only Irish Life policies but the other companies also.