21 Oct

Understanding Your Legal and General Endowment Options

Written By Dom Mia
October 21, 2023

Posted at 22:44h in Cashback by Dom Mia

As a journalist, I’ve come across many individuals who are unsure about their endowment options with Legal and General. It’s essential to understand the available plans and consider your specific needs and ambitions before making any decisions. In this article, I will guide you through the important factors to consider and explore alternative options that may suit you better.

Key Takeaways:

Before cashing in your Legal and General endowment plan, consult a financial adviser or contact the bank itself.
Cashing in your plan may result in reductions in the amount you receive and the value of your investment.
Consider potential tax implications, loss of loyalty bonuses, and life insurance/critical illness cover before surrendering your plan.
Explore other options such as stopping premium payments, changing payment frequency, or moving investments.
Legal & General offers a range of products, including pensions, life insurance, and investment options.

Things to Consider before Cashing-In Your Plan

When contemplating cashing in your Legal and General plan, there are several important factors to take into account. Comparing charges is crucial to understand the potential impact on your plan’s value. The type and duration of your plan can also affect the amount you receive upon surrendering it. If your plan is invested in With Profits, there may be reductions in its value.

Contractual additions often provide guaranteed growth amounts, which could be lost if you surrender your plan. Additionally, loyalty bonuses may be forfeited upon surrendering, and surrendering your plan may also have tax implications, particularly if done within the first 10 years. It’s essential to assess the potential costs and consequences before making any decisions.

Surrendering your plan also means losing the life insurance and critical illness cover it may provide. It’s important to consider the implications of losing this coverage, as it could be difficult or more expensive to replace in the future. Consulting with a financial adviser can provide further guidance on navigating these considerations and making an informed decision.

The Key Considerations:

Comparing charges associated with making changes to your plan
Potential reductions in the amount paid out based on plan type and duration
Possible loss of value in With Profits plans
Potential loss of guaranteed growth amounts provided by contractual additions
Forfeiture of loyalty bonuses upon surrendering the plan
Tax implications, especially within the first 10 years
Loss of life insurance and critical illness cover
Difficulty or increased cost in replacing the coverage in the future

Exploring Other Options for Your Legal & General Plan

When it comes to your Legal and General endowment plan, there are several alternative options you can consider before making any hasty decisions. These options offer flexibility and the opportunity to tailor your plan to better suit your needs and circumstances.

If you find it difficult to afford your premiums, don’t worry. You may be able to stop paying them while still maintaining your valuable life insurance and critical illness cover. This can provide you with some relief during challenging times.

Another option to explore is changing the payment frequency of your plan. If you’re struggling with yearly payments, switching to monthly premiums could make it easier for you to manage your financial commitments.

In the event of a divorce or separation, Legal and General offers the option to alter your plan to accommodate your changing circumstances. This ensures that your endowment plan continues to align with your needs and goals, even during challenging times.

Additionally, if you’re moving and need to rearrange your mortgage, your existing Legal & General plan can potentially be used to facilitate the process. This can help simplify matters and provide a seamless transition during this significant life event.

If your investment needs or risk tolerance have changed, Legal and General offers the possibility to move your investment to other options provided by themselves or other providers. This allows you to explore new opportunities and potentially make more informed investment decisions.

Furthermore, depending on the type of plan you have, you may be able to take a one-time lump sum from your endowment plan. This can provide you with some immediate financial flexibility.

In certain situations where you need to extend your borrowing, your lender may offer a loan using your plan as security. This can be a viable option to access additional funds while leveraging the value of your endowment plan.

Lastly, if you’re considering surrendering your plan, it’s worth exploring the option of selling it to specialist companies. These companies may be interested in buying your endowment plan and potentially offering you more than the surrender value. This could be a way to maximize the value of your plan and potentially achieve a better financial outcome.

Important Considerations for Cash-In Values

When considering cashing in your Legal and General plan, it is essential to understand the implications and factors that may affect the cash-in value. Some important considerations include:

Unit-Linked Funds: If your investments are in unit-linked funds, the value quoted is for illustration purposes only and may change based on the unit price at the date of illustration.
With Profits Investments: With profits investments consider the current interim and final bonus rates, potential reductions, and investment fluctuations.
Value Fluctuations: The value of investments can fluctuate, and there is a possibility of receiving less than the amount initially invested.
Switching Funds: Switching funds may involve a minimum investment term and potential loss of the initial investment.
Investment Term: The duration of your investment can impact the cash-in value, as some plans may have better returns over a longer period.

It is essential to speak to a financial adviser before making any changes to your plan. They can provide personalized advice and help you understand the potential risks and implications involved in cashing in your plan. Talking to an adviser can give you a better understanding of the specific details of your plan and guide you in making an informed decision.

“Investments are subject to market risks and fluctuations, and it is crucial to have a comprehensive understanding of the potential investment loss and other factors that may affect your cash-in value.”

Guidance from an Adviser

Working with a financial adviser can offer valuable insights into the potential outcomes of cashing in your Legal and General plan. They can assess your unique circumstances, provide tailored advice, and ensure you have a clear understanding of the financial implications involved.

By consulting with an adviser, you can navigate through the complexities of cashing in your plan and make well-informed decisions that align with your financial goals. They can guide you on the best course of action based on your individual situation, investment objectives, and tolerance for risk.

Responsible Investing at Legal & General

At Legal & General, we are committed to responsible investing, offering a range of pension funds that align with environmental, social, and governance (ESG) factors. Our diverse fund options cater to different investment preferences and risk profiles, ensuring that you can make choices that reflect your values and financial goals.

Whether you want pension funds that explicitly incorporate responsible investing objectives or funds that are subject to active ownership by Legal & General, we have options to suit your workplace plan. Our responsible investing fund guide provides detailed information on the different fund options available, including standard default options.

By choosing responsible investing, you can contribute to positive change while potentially achieving long-term financial growth. We believe that investing responsibly can make a difference in addressing global challenges and creating a more sustainable future. At Legal & General, we are proud to offer responsible investment options to our customers.

Personal Pension Options at Legal & General

When it comes to planning for your future, a personal pension can be a valuable tool. At Legal & General, we offer a range of personal pension options to help you save for retirement.

One option is a self-invested personal pension (SIPP), which allows you to have more control over your investments. With a SIPP, you have the flexibility to choose from a wide range of investment options, including stocks, shares, bonds, and more. However, it’s important to remember that the value of investments can fluctuate, and there is a possibility of receiving less than the amount invested.

Contributions made to a personal pension also benefit from tax relief. If you are a basic-rate UK taxpayer, you can enjoy a 25% tax relief on your contributions. This means that for every £100 you contribute, the government adds an additional £25. It’s a great way to make your money work harder for your retirement.

It’s important to keep in mind that the value of a pension can fluctuate, and it’s not guaranteed. However, with Legal & General’s personal pension options, you can have peace of mind knowing that you’re working towards a secure financial future.

With the right personal pension plan, you can take control of your retirement savings and have the freedom to choose how your money is invested. Whether you opt for a self-invested personal pension or another personal pension option, Legal & General is here to help you make the best decisions for your financial well-being.

Financial Protection with Life Insurance

In today’s uncertain world, it’s important to have the right financial protection in place to safeguard your loved ones. That’s where life insurance comes in. Life insurance provides a safety net for your family, offering financial support in the event of your death. At Legal & General, we understand the importance of securing this protection, which is why we offer a range of life insurance options to suit your needs.

As the UK’s number one life insurance provider, we have a wealth of experience in helping individuals find the right coverage. Our life insurance plans start from as little as £5 per month, making it affordable for everyone to access the financial protection they deserve. Whether you’re a young family looking to protect your mortgage or a retiree wanting to leave a legacy, we have the right plan for you.

With our life insurance policies, you can enjoy peace of mind knowing that your loved ones will be taken care of financially. In the event of your death, a lump sum payout will be provided to your beneficiaries, helping them cover expenses such as mortgage payments, childcare costs, and daily living expenses. It’s a small price to pay for the reassurance that your family will be financially secure, even in your absence.

Protecting your family’s future is easier than ever with Legal & General. With our affordable monthly premiums and comprehensive coverage, you can have the peace of mind knowing that your loved ones will be provided for. Don’t leave their financial security to chance – secure your life insurance policy today and enjoy the peace of mind that comes with knowing your family is protected.

Additional Resources and Features from Legal & General

Legal & General offers a range of additional resources and features to help you navigate your financial journey. Whether you’re looking for expert advice, keeping up with the latest news, or planning for the future, Legal & General has you covered.

One valuable resource is the . This podcast offers money tips and advice on various financial topics, including pensions, mortgages, and navigating the cost of living crisis. Tune in to gain valuable insights and learn practical strategies for managing your finances.

If you’re interested in staying up-to-date with the latest news and updates from Legal & General, you can access their news and full-year results. Stay informed about the company’s performance and industry trends to make informed decisions about your financial future.

Planning for the future and considering your loved ones’ well-being, Legal & General also provides information on financing funeral costs. Take the opportunity to plan ahead and alleviate stress for your loved ones during difficult times.

Legal & General’s Product Range

When it comes to financial products and services, Legal & General offers a diverse range that caters to various needs and goals. Whether you’re looking to invest, plan for retirement, protect your family, or explore equity release options, Legal & General has got you covered. Here’s an overview of their product range:

Investments:

Legal & General provides investment options to help you grow your wealth and achieve your financial objectives. One popular choice is the stocks and shares ISA, which allows you to invest in a wide range of assets, potentially earning attractive returns over the long term. By taking advantage of tax-efficient savings and the potential for capital growth, you can make your money work harder for you.

Pensions and Retirement Planning:

Planning for retirement is crucial, and Legal & General offers a range of pension options to help you build a secure future. Whether you opt for a personal pension or a self-invested personal pension (SIPP), you can benefit from tax relief on your contributions and choose from various investment options. It’s important to remember that the value of your pension can fluctuate based on market conditions, so it’s wise to regularly review your retirement plans and seek professional advice if needed.

Equity Release, Life Insurance, and Business Protection:

Legal & General also provides solutions to address your specific financial needs. If you’re a homeowner looking to access the value of your property without having to move, equity release could be a suitable option. Legal & General offers equity release plans that allow you to unlock some of the equity in your home while continuing to live in it.

Furthermore, Legal & General offers life insurance and critical illness cover to provide financial security for your family in case of unforeseen events. Their business protection solutions aim to safeguard your business against potential risks, ensuring its continuity and protecting its value.

Surveying Services:

Legal & General also offers surveying services to assist you with property-related needs. Whether you’re buying, selling, or considering renovations, their surveying services provide professional insights and guidance to help you make informed decisions.

Legal & General’s comprehensive product range enables you to address your financial objectives, protect your loved ones, and make the most of your assets. Whether you’re an investor, a retiree, a homeowner, or a business owner, their offerings are designed to meet your unique needs in the ever-changing financial landscape.

How to Manage Your Legal & General Account

Managing your Legal & General account is simple and convenient with our online account management service, “Manage Your Account.” With just a few clicks, you can access and manage all your Legal & General products, including pension savings, insurance policies, and investments.

To get started, simply log in to your account using your unique username and password. Once logged in, you’ll have a clear overview of all your products, allowing you to view their details and make any necessary changes. Whether you want to track the performance of your pension savings, update your insurance policy information, or monitor your investments, it’s all just a few clicks away.

Our online platform also provides you with the flexibility to make updates and adjustments to your account at any time that suits you. You can update personal details, change beneficiaries, switch investment options, and much more, giving you control over your financial future.

Managing your Legal & General account online is not only convenient but also secure. We have implemented robust security measures to protect your personal and financial information. Additionally, our friendly customer support team is available to assist you with any queries or concerns you may have. So why wait? Take advantage of our online account management service today and stay in control of your financial journey.

Contacting Legal & General

When it comes to contacting Legal & General, there are various channels available to ensure you receive the support and assistance you need. Whether you have questions about your account, need advice from an adviser, or require general customer support, Legal & General is just a call or click away.

For customer support and general inquiries, you can find the contact information on Legal & General’s website. They offer phone support, allowing you to speak directly with a representative who can provide guidance and help resolve any issues you may have. It’s important to note that call charges may apply, and the duration of the call may impact the cost.

If you’re looking for personalized advice and recommendations, speaking to an adviser is highly recommended. Legal & General can connect you with an adviser who can assess your specific needs and goals and provide tailored solutions. They will guide you through the available options and help you make informed decisions for your financial well-being.

For quality assurance and compliance purposes, it’s important to be aware that Legal & General records and monitors calls. This ensures that they maintain high standards of service and can address any concerns or issues that may arise during the interaction. Rest assured that your privacy and confidentiality are respected throughout the process.

Expert Advice at Your Fingertips

Legal & General understands the importance of accessible and reliable support. That’s why they offer a range of contact channels and resources to cater to your needs. Whether you prefer speaking to a customer support representative directly or seeking personalized advice from an adviser, Legal & General is committed to providing you with the assistance you require. Contact them today to get the support you need for your financial journey.

Conclusion

In conclusion, it is crucial to thoroughly understand your Legal and General endowment options before making any decisions or changes to your plan. Considering important factors such as charges, reductions, tax implications, and alternative options will help you make well-informed choices that align with your specific needs and ambitions.

Before cashing in your plan, it is highly recommended to speak to a financial adviser or contact the bank itself. These professionals can provide valuable guidance and ensure that you fully comprehend the potential implications of surrendering your plan, such as reductions in the amount received and the value of your investment.

While surrendering your plan may seem tempting, keep in mind that it could result in the loss of guaranteed growth amounts, loyalty bonuses, and life insurance/critical illness cover. Additionally, there may be tax implications if you surrender your plan within the first 10 years. Therefore, it is essential to carefully evaluate the potential costs and implications before making any decisions.

Legal & General offers a wide range of alternative options to consider, such as stopping premium payments, changing payment frequency, altering the plan in divorce or separation, rearranging your mortgage, moving your investment, taking a lump sum, extending borrowing, or even selling your endowment plan to specialist companies. Exploring these alternatives can help you find a solution that better suits your current circumstances and financial goals.

FAQ

What factors should I consider before cashing in my Legal and General endowment plan?

Before cashing in your plan, it is important to speak to a financial adviser or contact the bank to understand the potential reductions in the amount you receive and the value of your investment. Cashing in your plan may result in the loss of guaranteed growth amounts, loyalty bonuses, and life insurance/critical illness cover. There may also be tax implications if you surrender your plan within the first 10 years.

What should I know about the charges associated with making changes to my Legal and General plan?

When considering cashing in your Legal and General plan or making any changes, it is important to compare the charges involved. Surrendering your plan may result in reductions in the amount paid out, depending on the type and duration of the plan. If your plan is invested in With Profits, the value of your investment may be reduced. It is recommended to speak to a financial adviser for a better understanding of potential risks and implications.

What options do I have if I can’t afford my premiums?

If you’re unable to afford your premiums, you may be able to stop paying them while maintaining life insurance and critical illness cover. Additionally, changing the payment frequency from yearly to monthly may help if you are finding it difficult to pay premiums. It is recommended to explore these options before considering cashing in your plan.

Can I make changes to my Legal and General plan in the event of divorce or separation?

Yes, Legal and General may be able to alter your plan to suit your personal circumstances in the event of divorce or separation. It is advised to contact Legal and General for further assistance and guidance.

Can I use my Legal & General plan when rearranging my mortgage?

If you’re moving and need to rearrange your mortgage, you may be able to use your existing Legal & General plan. It is recommended to consult with your lender and Legal & General for more information and assistance.

What are the potential costs and implications of surrendering my Legal and General plan?

Surrendering your Legal and General plan may result in reductions in the amount paid out, loss of guaranteed growth amounts, loyalty bonuses, life insurance, critical illness cover, and potential tax consequences. It is important to consider these costs and implications before making any decisions.

Are there any alternatives to cashing in my Legal & General plan?

Depending on your specific needs and ambitions, there may be alternatives to cashing in your Legal & General plan. These can include stopping premium payments, changing payment frequency, altering the plan in divorce or separation, rearranging your mortgage, moving your investment, taking a lump sum, extending borrowing, or selling your plan to specialist companies. It is recommended to explore these alternatives and seek professional advice for a better understanding of the options available.

Is it possible to take a one-time lump sum from my Legal and General plan?

Depending on the type of Legal and General plan you have, it may be possible to take a one-time lump sum from your plan. It is important to contact Legal and General to discuss the options available to you.

Can I sell my Legal and General endowment plan to specialist companies?

Yes, some specialist companies may be interested in buying your endowment plan, potentially offering more than the surrender value. If you are considering selling your plan, it is advised to research and contact reputable companies for further information and guidance.

What should I know about responsible investing at Legal & General?

Legal & General offers a variety of pension funds with different approaches to responsible investing. Some pension funds explicitly incorporate responsible investing objectives, while others are subject to active ownership by Legal & General. The responsible investing fund guide provides details on the different fund options available, including standard default options. It is recommended to review the guide and consult with Legal & General for more information.

What are the personal pension options available at Legal & General?

Legal & General offers a Personal Pension option, including a self-invested personal pension (SIPP) with a minimum investment of £100. Contributions to a Personal Pension benefit from 25% tax relief for basic-rate UK taxpayers. Personal Pensions provide investment options, which may involve changes in value due to market fluctuations. It is important to note that the value of a pension may fall as well as rise and is not guaranteed.

How does life insurance provide financial protection?

Life insurance from Legal & General provides financial protection for dependents in the event of your death. By paying monthly premiums, you ensure that your loved ones are financially secure and can cover expenses such as mortgage payments, education, and everyday living costs. Legal & General offers life insurance coverage starting from £5 per month. The cost of life insurance premiums may vary depending on factors such as age, health, and the coverage amount.

What additional resources and features does Legal & General offer?

Legal & General provides various resources and features to help individuals navigate financial challenges and plan for the future. The A Little Bit Richer podcast offers money tips and advice on various financial topics, including payslips, pensions, and mortgages. Legal & General also provides information and support on the cost of living crisis and offers resources to help individuals manage their finances. Additionally, you can access the latest news and full-year results from Legal & General to stay informed about the company’s performance. Legal & General also offers guidance on financing funeral costs, investment options, pensions, retirement planning, equity release, life insurance, critical illness cover, business protection, and surveying services.

How can I manage my Legal & General account online?

Legal & General provides an online account management service called “Manage Your Account.” With this service, you can log in to your account and view and manage your Legal & General products, including pension savings, insurance policies, and investments. The online platform offers convenience and accessibility for account management.

How can I contact Legal & General for assistance?

Legal & General can be contacted through various channels. You can find contact information for customer support on their website. It is recommended to speak to an adviser for personalized assistance and recommendations. Please note that call charges may vary depending on the nature and duration of the call. Additionally, it is important to be aware that Legal & General records and monitors calls for quality assurance and compliance purposes.