Skip to Main Content
How can we help you?

Converted Endowment to Whole of Life plans

For planholders who have a Whole of Life plan (this may have been converted from an endowment plan) and are paying a small premium of £1 or £5 per annum.

Contents

  1. How your plan works
  2. Managing your Whole of Life plan
  3. Things to consider
  4. Getting financial advice
  5. Next steps

How your plan works

  • If you’ve got a whole of life plan that was converted from an endowment plan you can access your cash through regular and/or one-off withdrawals.
  • On death the remaining value of your plan will be paid.
  • You make a small annual payment which protects your plan’s favourable tax status.
  • You retain control over how the cash in your plan is invested.
  • Provided you’re up to date with your payments, cash paid out from your plan is normally paid free from tax.

Managing your Whole of Life plan

We can help, whether you’re thinking about

    • taking cash out
    • stopping your annual payment, or
    • changing the funds your plan is invested in
       

    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.

      Things to consider

      You can take cash from your plan in the following ways:
      • Take regular withdrawals.
      • Cash-in part of your plan.
      • Cash-in in all of your plan
      Before making your decision, consider:
      • We won’t charge you for taking cash out of your plan.
      • If you select regular withdrawals you’ll have options about their amount and frequency.
      • You’ll also be able to specify which funds you want the cash to be paid from.
      • We may close your plan if the value falls below the product minimums.
      Tax considerations
      • Withdrawals taken from your plan are normally paid free of tax, as long as your annual payments are up to date.
      • If you stop paying the annual payment, any cash you take out may be taxable.
      • You might need to pay tax depending on your circumstances and the options you choose.
      • Tax rules can also change in the future. You may want to seek advice.

      Your personal investment profile
      Fund-specific considerations
      • You can't cancel a switch instruction once it's been given, however you can give subsequent instructions to us.
      • There may be a charge to switch funds
      • Charges may differ between funds.
      • Where you have a choice of funds, you can switch at any time.
      • There may be a limit to the number of switches you can make, or the number of funds you invest in.
      • You can’t make additional payments to your plan.
      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.

      • If you stop paying your annual payment, you’ll lose the favourable tax treatment which can’t be reinstated. If this happens, we may close your plan and pay the proceeds which could be taxable.
      • Your annual payment serves two important purposes:
        • It maintains your plan.
        • It protects your plan’s favourable tax treatment.
      Tax considerations
      • You might need to pay tax depending on your circumstances and the options you choose.
      • Tax rules can also change in the future. You may want to seek advice.

      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.

      Need expert financial advice?

      If you don't already have an adviser, it takes just three minutes to book a no-obligation, initial chat with M&G Advice. It’s a great way to explore how we could help.

      Book your chat
      Need Expert Advice