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Endowment converted to whole of life plan

Taking cash from your plan  

If you converted your endowment into a whole of life plan and are considering taking cash out, we’ll be happy to help. It’s important to note that once you’ve told us what you’ve decided to do, you can’t change your mind. Please be sure you understand all your options, and the effect of any changes you make. There are some things you and any other plan owner should consider before making any decisions.

If you have any questions once you’ve read this summary, or need any help understanding your options, just call us on 0345 640 1000, or +44 178 644 8844 if you’re calling from abroad.

We might record your call for training and quality purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata.

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.

If you're thinking of making changes to your plan, or paying in more money, it's really important you speak to a financial adviser. They can help you understand if what you want to do is right for you and your aims and circumstances, that may have changed since you took your plan out. They'll be responsible for the advice they give and you'll also have protection from the Financial Ombudsman Service.

Regardless of whether you’ve taken advice, you can refer any matter to the Financial Ombudsman Service for consideration should you feel that you haven't been treated fairly, or for any other aspect under the Financial Ombudsman Services remit.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Your options

You can take cash from your plan in the following ways:

  • Taking regular withdrawals.
  • Cashing in part of your plan.
  • Cashing in all of your plan.

Things to consider before making your decision

  • 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. If you have any questions about your tax position, just give us a call.

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.

Protecting yourself from investment scams

Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out more, and stay ahead of the scammers.

What to do now

Give us a call on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad. 

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.

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area at pru.co.uk. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.

We’re here 8am - 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.

 

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.