Changing the investments in your endowment plan
If you’re considering changing the funds your endowment plan is invested in, we’ll be happy to help. It's important to note that you can't cancel a switch instruction once it's been given, however you can give subsequent instructions to us. 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.
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 investment choice
We can discuss where your money is currently invested, and your choices if you call.
Where you have a choice of funds you can switch at any time, however there may be a limit to the number of switches you can make, or the number of funds you invest in.
These vary depending on your plan type. We can explain these to you if you get in touch. They could include:
- Switching some or all of your money to another fund(s).
- Redirecting future regular payments to another fund(s) and leaving your existing money where it is.
Things to consider before making your decision
How long you intend to remain invested. When changing funds it’s important to remember that the value of investments can go down as well as up, and that you could get back less than you paid in.
- Your thoughts on,
- balancing investment risk and reward.
- your level of investment knowledge.
- the length of time remaining on your plan.
- Switching out of the With-Profits Fund could result in a market value reduction causing the amount switched from the fund to be reduced.
- There may be a charge to switch funds, although redirections are usually free.
- Charges may differ between funds.
- Timing: some switches are actioned straight away, others may take place 28 days after we receive your instruction.
- Possible delays: in exceptional circumstances your switch instruction could be delayed by up to six months. We'll let you know if this applies to you.
Protecting yourself from investment scams
According to Action Fraud, the UK’s fraud and internet crime reporting centre, an estimated £1.2bn is lost to investment scams every year. 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 phoning 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 from www.pru.co.uk and selecting ‘contact a financial adviser’. 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 and happy to help in any way we can. Please make sure you have your plan number to hand when you call.