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Endowment

Changing the details of your plan

If you’re considering making changes to your plan, such as the premiums you pay or the amount of life cover you need, we’ll be happy to help. It’s important to note that once you’ve told us what you’ve decided to do, you can’t change your mind. Please be sure you understand all your options, and the effect of any changes you make. There are a few things you and any other plan owner should think about before you make any decisions.

If you have any questions once you’ve read this summary, or need any help understanding your options - just call us on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad.

We might record your call for training and quality purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata.

How an endowment plan works

An endowment plan is a long-term savings and investment plan with life insurance. You pay a premium for an agreed period and receive a lump sum at the end of that time. If you die before then, we pay a guaranteed minimum amount, called a sum assured.

Endowments were often used to help repay mortgages or other debts and as long-term savings and investment plans with life insurance.

Your options

These vary depending on your plan type and the benefits you’ve chosen. We can explain your options further if you call us. They could include:

  • Extending your plan’s term so it finishes later than originally intended.
  • Increasing or decreasing your premiums to change the amount paid to the plan.
  • Increasing or decreasing life cover to suit changing circumstances.

Some of these options will only be available under certain circumstances, and you may need an additional health assessment. There may also be restrictions on increases to premiums, life cover and the plan’s term.

Other options include stopping payments for a while and making them up later or stopping your payments for good by making your plan paid up.

You could also consider cashing in some or all of your plan.

Things to consider before making your decision

Any change to the premiums you pay, to your level of insurance cover or to the remaining term of the plan could result in the following:

  • A change to the way your plan is treated for tax purposes, possibly resulting in a tax liability.
  • An increase to regular payments required to maintain the new agreed level of cover.
  • Additional health assessments being required.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Protecting yourself from investment scams

Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out how to stay ahead of the scammers.

What to do now

Give us a call on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad. We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area at pru.co.uk. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.

We’re here 8am - 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.

 

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.