It is, though, still possible to obtain a better price by selling it to a market maker who takes it on, carries on making the payments and takes the terminal bonus.
Contact the Financial Ombudsman Service at financial-ombudsman.
Published: 01:02 GMT, Updated: 09:53 GMT, 32, view zodiac slots review comments, savers who have old with-profits endowments are being held hostage by life insurance chase 5 percent bonus companies.The company did not pay a terminal bonus.Sell it, this used to be a popular option, but the market has shrunk massively in recent years.Thats better than industry giant Prudential, considered one of the stronger with-profits offices, which managed 31,438.But there is better news for savers into private pension schemes.But, crucially, there is no guarantee of this.This represents an annualised return.7 and a real return.6 per year.They are trapped in funds that are performing poorly and cant get out early because they would lose a substantial payout at the end of the term.Standard Life and Legal and General among insurers to slash maturity values despite the ftse being a near record high.What's happening is that the providers are still playing catch-up on the losses they incurred before.
Or it can add nothing.
Patrick Connolly of financial advisers Chase de Vere says: "It's disappointing because I really did think we would see increased payouts on endowments this year.
The millions of people who have clung on to mortgage endowment policies received more miserable news this week, with many insurers cutting payouts despite the rising stock market.
The advantage is you still qualify for the terminal bonus, although it won't be as much as if you had continued.
Research by Money Mail reveals that some policyholders who have saved 50 a month over the past 20 years - a total of 12,000 - would have around 14,000 if they cashed in their 25-year policy five years early.
For a Royal London 20-year 200 per month with-profits personal pension the payout is 88,396, representing an annualised return.7.But, with payouts falling every year, you could get less.The payout on a Scottish Life 20-year 200 per month with-profits personal pension is 83,2554, representing an annualised return.2.Add the premiums you pay to the surrender value to see if it is worth carrying.Standard Life has cut payouts on endowment policies.Surrenda-link ) is the best known in the traded endowment market.The biggest endowment provider, Standard Life, said it was slicing 2 off payouts despite the 12 rise in the ftse 100 index in 2013.This is down.5 per cent on last years figure of 20,927.With these long-term plans, policyholders expected a steady build-up of their savings with 5 per cent added to their policies each year.The company said regular bonus rates will be maintained or increased for Royal London and Scottish Life policies."High fees often take away most of the gain says Nutmeg chief executive, Shaun Port.Savers had no way of knowing at the time that this would be the case.Write to the provider and ask for a "surrender value" and whether there are any penalties for cashing in early.