Contents
- How your endowment plan works
- Accessing your product information online
- Managing your endowment plan
- Changing your details
- Understanding your options
- Things to consider
- Understanding if your plan will meet the target amount
- Your options if your plan has a shortfall
- Getting financial advice
- Next steps
How your endowment plan works
You pay regular premiums for a set period, and at the end of that time, receive a lump sum payout. If you pass away before the plan ends, we pay a guaranteed minimum amount - called the Sum Assured.
Accessing your product information online
Send us secure messages
Log in to our Online Service to send us a secure message if you want to
- update your personal details,
- update your bank details, or
- send us your ID documents.
Registering is quick and easy
It takes about five minutes. You’ll need your
- policy number (found on any letter we've sent you)
- postcode, and
- date of birth.
Managing your endowment plan
Before making any changes to your plan:
- Please make sure you understand your options and how they might affect your plan. Because once you've told us what you'd like to do, it may not be possible to change your mind.
- We recommend you get financial advice. See ‘Getting financial advice’ for more information about this.
- Remember that the value of your investment can go down as well as up, so you might get back less than you put in.
Important information
- Using your endowment plan
If your endowment was set up to pay your mortgage or another debt, you should contact your lender before you make changes to it, as you might need their permission. You may also have to make alternative repayment arrangements, and replace any life cover you’ve lost.
- Waiver of Premium: What to do if you’re unable to work
If you took out Waiver of Premium with your plan and you're unable to work through illness or accident, you may be able to apply for your payments to be made on your behalf. Please call so we can talk to you about this.
Changing your details
To let us know about your new UK bank or building society details, you can
- log in to our Online Service and send us a secure message, or
- fill in a Direct Debit form and send it back to us.
Please ensure any updated bank details reach us at least 10 working days before any payment is due.
To update your name, please send us a signed letter that includes:
- Your previous and new name
- Your plan number
- One original document as proof of the change:
- Marriage Certificate
- Civil Partnership Certificate
- Decree Absolute
- Final Order
- Deed Poll
We’ll return your original document once we’ve processed the change.
Please send you letter to:
Prudential,
Lancing,
BN15 8GB
Understanding your options
The options available depend on your plan type and the benefits you’ve chosen. We can explain these in detail if you get in touch. Here’s an overview:
- Extend your plan’s term so it finishes later than originally intended.
- Increase or decrease your premiums to change the amount paid into the plan.
- Increase or decrease life cover to suit your circumstances.
- Some changes may require a health assessment and could have restrictions.
- Switch some or all of your money to another fund.
- Redirect future payments to a different fund, while leaving existing money where it is.
- Take a temporary break from payments and make them up later.
- Stop payments permanently by making your plan “paid up.”
- Reduce your payments.
- Cash-in your plan.
- Fully cash-in your plan.
- Cash-in part of your plan.
- Sell your plan on the second-hand endowment market.
Things to consider
Changing your premiums, level of life cover, or the plan term, could mean:
- Your plan’s tax status may change, which could create a tax liability.
- You may need to increase regular payments to maintain your new level of cover.
- Additional medical assessments might be required.
Some key points to keep in mind that may influence your fund selection.
Your personal investment profile
- Your comfort with balancing investment risk and reward.
- Your level of investment knowledge.
- How long you plan to stay invested.
Fund-specific considerations
- Switching out of the With-Profits Fund could result in a Market Value Reduction (MVR), reducing the amount you receive.
- There may be a charge to switch funds.
- Charges may differ between funds.
Timing and processing
- Some switches are actioned straight away, others may take place 28 days after we receive your instruction.
- In exceptional circumstances, your switch instruction could be delayed by up to six months - we’ll let you know if this applies to you.
Taking a payment break
Your cover will continue during a temporary payment break. After the break, you can:
- Pay the missed payments and keep all benefits. You may need to confirm continued good health.
- Make your plan paid up. You’ll stop making payments permanently.
- Cash-in your plan.
Making your plan paid up
Once your plan is paid up, you can’t restart payments. Please think carefully before making this decision and contact us if you need help. Stopping payments permanently can have important effects:
- Your plan’s value may drop and might not meet its original purpose.
- Life cover could reduce.
- Tax status and charges may change, possibly increasing costs.
Depending on the type of plan you have and the options you chose when it started, you could also lose extra benefits, such as:
- Critical illness cover – this pays a lump sum if you as the Life Assured or your children suffer a serious illness.
- Mortgage payment protection – this helps cover costs if illness or accident stops you working.
- Guaranteed annuity option – this provides a lifetime income at maturity; if payments stop, this will reduce.
The effect of any changes you make depends on your plan and benefits.
Taking some or all of your money could mean:
- An impact on your ability to repay your mortgage or other debts.
- Reduced or lost life cover and benefits, which could be harder and more expensive to replace, particularly if your health has deteriorated.
- If you cash-in a plan which is invested in the With-Profits Fund, a Market Value Reduction (MVR) might reduce the value of withdrawals.
- A change in tax status of the plan, which might mean paying more tax in the future.
- A change to charges, or additional charges, to your plan.
- If you’re invested in one of the PruFund protected funds any cash-in will reduce your guaranteed amount.
- You might get back less than you paid in because plans are designed to pay out over the full term.
- Cashing-in early, together with changing investment values can affect the value.
- Some plans include a guaranteed annuity option for lifetime income at maturity. This won’t apply if you cash-in early.
Selling your plan on the second-hand endowment market
- Not all plans are eligible to sell.
- Those that are eligible, could be sold for more than the cash-in value, but you’ll lose all benefits, including life cover.
- Income Tax may apply on any gain, whether you sell or cash-in.
- Market makers help match sellers with buyers who invest in second-hand plans.
- Buyers can be found via press, internet, TV, phone directories or through financial advisers.
- Once you sell your plan, you stop making payments and receive the agreed sale amount.
- The Life Assured on the plan remains the same – when it pays out, the plan and its benefits will be paid to the new owner.
- Sales typically take 4–6 weeks to complete.
If you're thinking about cashing-in your plan
- Please take the time to read this leaflet - you might want to consider some of the other choices available to you.
- You should expect it to take from four to six weeks to complete.
- You could be liable to Income Tax on any gain you make, whether you decide to cash-in your plan or sell it.
Understanding if your plan will meet the target amount
We send you an Annual Bonus Statement (ABS) that details the performance of your plan. If you’re a mortgage endowment customer you’ll also receive a yearly review letter which tells you whether the plan is on track to meet its target amount. These letters are colour coded red, amber and green.
- Green - your plan is on track to meet its target amount at maturity.
- Amber - your plan is at significant risk of not meeting its target amount at maturity.
- Red - there is a high risk that your plan will not reach its target amount at maturity.
Your options if your plan has a shortfall
If the value of your fund is less than the sum required to meet and repay the target amount, you’ll need to make up the difference from other sources.
Alternative mortgage arrangements include
- switching to a repayment mortgage
- starting an additional savings plan, or
- extending or increasing premiums on your existing plan where permitted.
MoneyHelper has produced a guide to help people who may be facing financial shortfall. You can request a copy of this guide by calling MoneyHelper helpline on 0800 011 3797 or by visiting moneyhelper.org.uk
Please note, we can't control what's shown on any other websites.
Getting financial advice
If you’re making an important financial decision, or thinking about your longer term financial health, then we recommend you get financial advice.
- You should speak to your financial adviser if you have one.
- If you don’t have an adviser, you can search for an independent financial adviser by visiting unbiased.co.uk or by calling them on 0800 023 6868.
- You could speak to M&G Advice. Whether it's about financial planning, accessing your pension, making sure you get the most from your tax allowances or protecting your loved ones; whatever your financial goals – we can help.
Next steps
To make changes to your plan, or discuss your options, call us on 0345 640 1000 or +44 1786 448844 if you’re calling from abroad. Lines are open Monday to Friday, 08:00 – 18:00, excluding public holidays.
We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.
We might record your call for training and quality purposes. To find out more about how we use your personal data please visit the My Data page.
