How the action you take now may affect your investment and life cover:

• Keep the policy going, paying the same premiums until maturity.

This will maintain your insurance cover. You may also be able to change the policy if the terms allow and by agreement with the life insurance company by shortening the term, lengthening the term, reducing the sum assured etc. Any such changes may affect you life cover.

• Make the policy paid up and pay no more premiums and receive a reduced sum at maturity. This will reduce your insurance cover.
• Or cease to have an interest in the policy and pay nothing more by:
  
  • Selling the policy on the Traded Endowment Policy Market, or by
  • Surrendering the policy back to the life insurance company

Selling or surrendering your policy will leave you with no insurance cover but you may be able to purchase cover which, if you need it, you should do so before selling, surrendering or making the policy paid up.

If you require advice you should approach an Independent Financial Adviser who is authorised by the Financial Services Authority. These may include an independent financial adviser (IFA), stockbroker, life insurance broker, solicitor, accountant, actuary, or other professionally qualified and authorised person.

This page was last updated on 12-Mar-2008