09 Sep 2020
I am currently 26 now and signed back when I was 24, younger and dumber. Realised now that endowment plans may not be the way to go with investment.
Guaranteed payout at the end of the 15 years is only 52k. Non guaranteed at 3.25% returns will be 59k and 4.75% returns will be at 68k.
If I surrender now, I have paid a total of 15k and can get surrender value of 6.2k. The plan also comes with 37k accidental death benefit.
Should I keep this plan or surrender now and invest in other ways(ETFs)?
Generally, endowments plans are a 'forced savings plans' with g and ng payouts. It shouldnt be compared to an investment product such as ETFs eg thus the returns will definitely not be as attractive as what you would get from putting into the above. I consider them as a higher return and longer term SSB, like a safety net for yourself rather then putting in fds/hisa. If you are able to achieve better ng returns using that amount then go for it. Its your money afterall, you do as you deem fit
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