PAUL Flynn, MP for Newport West, (Letters, August 18) expressed concerns about endowment policies. Some of his comments may be valid and endowment policies are definitely not for every housebuyer, but I would like to warn those with endowment mortgages not to panic.

I am concerned that with all the very negative coverage in the Press, especially when people talk about mis-selling, that policyholders might surrender their policies and remortgage.

I would advise people who have endowment policies to carry on paying the premiums if at all possible as the surrender values offered by the insurance company are unlikely to represent the actual value of the policy.

If a policyholder is certain that they can get a better deal by remortgaging, or if they simply cannot afford to keep up the payments, they may be able to sell the policy rather than surrender it back to the insurer.

Many investors are keen to buy second-hand endowment policies as they are an attractive investment once the initial charges have been paid.

Policyholders wishing to sell should consult one of a number of professionals in this market, who may buy their policy for considerably more than they would have got by surrendering it.

People should not be panicked into making any rash decisions about their endowments and, if in any doubt, should seek independent financial advice.

DAVID CARRINGTON, Sales and Marketing Director, PolicyPlus International plc, Henry Street, Bath.

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