Standard Life has voiced its opinion that surrendering with profits policies now could be right for some investors.
Whilst the insurer and investment provider was careful to add a few caveats, Standard Life’s Chief Executive Trevor Matthews said in an interview with Professional Adviser magazine: “You have to take a view and do all the sums properly before making a decision. Sometimes a surrender might be the best option in some cases”.
Our view
There are many people invested in poor performing with profits policies, paying little or no bonuses.
Whether or not you should surrender your policy will depend on the reason it was taken out and your views of it now.
If it can be proven that policyholders would be better off out of their with profits policy, surrender is the best option, as long as all possibilities have been covered.