Royal Liver endowment policy query

kenkin

I have a query about a Royal Liver Joint low cost endowment policy
I took it out in 1999 and the maturity date is 2015, the monthly premium is €109.96. At end 2009 the total sum assured was €20526 with a guaranteed min death benefit of €25395. The bonuses over the last few years have been very little with no bonus at all for 2009.
I rang them today and i was quoted a surrender value of €12318 and I have paid premiums of €12975.
I am wondering if I would be better off surrendering this policy and taking out a joint term life policy for 10 yrs at approx. €77 per month and investing the surrender value of €12318 in a 5.5yr Post Office account.
I would be grateful for any advice as I am very poor at this type of thing

Joey the lips

I have a simular policy that pays less but. I remember the royal liver telling me most of the bonuses accrew in the last 5 years. Which like you i am heading into. However mine is not as generous as yours.

broker2008

If you pay another 5 years premiums, assuming policy matures August 2015 would mean another 6k in premiums paid with a guaranteed payout of 20k or is it 25k (?) - if it is 25k I would keep it as you have the prospect of a terminal bonus to go onto it also with total premiums paid of 18k.

I took out a Royal Liver policy about 10 years ago and the breakeven point by their original projection was about 9 years but my guarantee plus annual bonuses is now higher than the amount I originally invested.

broker2008

They might allow you take out a loan against the policy so you would not have to cash in allwoing you to take out extra life policy anyhow.

kenkin

Thanks for the replies Broker.
The min death benefit if either of us die is 25395.
The total sum assured which we will receive in 2015 if neither of us die is 20526 ( assuming no more bonuses )
There is no terminal bonus with this policy
Would you still keep it or surrender it and take out a term insurance policy