PAUL Flynn, MP for Newport West, has recently written to the press to express his concerns about endowment policies. Some of his comments may be valid, but I would like to warn those with endowment mortgages not to panic.

I am concerned that with all the very negative coverage in the press, policyholders might surrender their policies and remortgage. I would advise people who have endowment policies to carry on paying the premiums if at all possible, as the surrender values offered by the insurance company are unlikely to represent the actual value of the policy.

If a policyholder is certain that they can get a better deal by remortgaging, or if they simply cannot afford to keep up the payments, they may be able to sell the policy rather than surrendering it back to the insurer. Policyholders wishing to sell should consult one of a number of professionals in this market, who may buy their policy for considerably more than they would have got by surrendering it.

My main point is that people should not be panicked into making any rash decisions about their endowments, and if in any doubt should seek independent financial advice.

David Carrington

Sales and Marketing Director

PolicyPlus International plc

Henry Street, Bath

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.