Norwich Union Endowment

If you currently hold a Norwich Union endowment policy you should be receiving a projection letter once every two years. This letter will tell you the status of your endowment policy and whether it is on track. An FSA factsheet should also be included that will give you information on what options are available to you if, for example, you are unhappy with the performance of your Norwich Union endowment policy or are experiencing a shortfall.

There are several factors to consider before deciding on what course of action to follow:

Interest rates – Interest rates have gradually fallen over the past six years, under the management of the Bank of England. As a result, the monthly repayments on your mortgage may also have fallen over the same period. This may have offset any fall in investment returns, which have also been generally lower over the past six years.
Investment performance – A number of global events, combined with falling UK inflation, have meant that stockmarkets both in the UK and around the world have been performing unreliably or poorly over the past six years. This has lead to lower investment returns for many people.
Changes in tax treatment – Tax relief no longer applies to mortgage interest repayments.

If, after considering the range of options available, you decide to cash in your Norwich Union Endowment, it is worthwhile to get both a surrender value quote from Norwich Union as well as an Endowment Quote so you can examine the possibility of selling your policy.