Endowment converted to a whole of life plan
Stopping your annual payment
If you're thinking about stopping your annual payment, there are some things you and any other plan owner should consider before making any decision.
How your plan works
If you’ve got a whole of life plan that was converted from an endowment plan you can access your cash through regular and/or one-off withdrawals. On death the remaining value of your plan will be paid. You make a small annual payment which protects your plan’s favourable tax status.
You retain control over how the cash in your plan is invested. Provided you’re up to date with your payments, cash paid out from your plan is normally paid free from tax.
The value of your investment can go down as well as up and you may not get back the amount that you put in.
Things to consider before stopping your payment
Your annual payment serves two important purposes:
- It maintains your plan.
- It protects your plan’s favourable tax treatment.
Tax rules are complex and require careful consideration and the impact will depend on your individual circumstances. Taxation, legislation and HM Revenue & Customs practice is liable to change without notice. You may want to seek advice.
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 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 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.