Standard Life Endowment Maturing in 3 weeks

collecting.dust

Hi all

We have a Standard life endowment that is due to mature in 3-4 weeks time on 24th August.

Our last correspondance from standard life recently sent to us (issued on 16th July) shows an estimated shortfall.

The breakdown on the latest paperwork is as follows

Investment linked fund = £10,478
Life with Profits = £11,874.92
Promise top up payment £2024.64

Its was estimated to pay £24,377.96 when target amount was £28,752.00 leaving us with a shortfall of £4374.04

I think what my question is - Is this likely to change much - Final figures are calculated on the day of its marurity I believe in 3-4 weeks time.

Has anyone recent experience of maturing policies and give any advice on if the figures are likley to change much - or is this pretty much what we can expect to get.

It drives me mad that we are so close to maturity and yet still are not 100% sure what it will pay

dunstonh

SL have had a habit of not including the terminal bonus on maturity notices. That has caused them to jump up a lot on maturity. However, that tends to be on their conventional with profits plans and not the unitised versions.

You should get pretty much what you are told subject to any market fluctuations in the sector your investment funds are in(on the investment linked side).

It drives me mad that we are so close to maturity and yet still are not 100% sure what it will pay

If you are still invested in the equity funds then that is to be expected. If you have switched to cash or fixed interest funds then you should see very little change.

collecting.dust

Thank you Dunstonh. Thats helpful to know

I had wondered about terminal bonus as well.
The figures I quoted above are under the heading of Value of the Plan
Then further on in the letter it says Breakdown of your plan and gives the following info

Investment Linked fund
Value of the Units £10,478.40

Life With Profits Fund
Value of the units - £9,267.41
Final Bonus - £2607.51
Giving Total - £11,874

Promise Top Up Payment - £2024.64


So am I right to assume - the final bonus is what is also known as the Terminal bonus and is therefore declared here ?

Gorgeous_George

My friend had a policy with SL that matured in June 2008. He got exactly (to the penny) what his letter said he would get. No terminal bonus and a similar shortfall to te OP's.

However, SL are due to announce interin results. I expect them to be disappointing and therefpre cashed in (18 months before maturity). My reasoning was that any custs would not be recovered in these uncertain times. If the OP knows the surrender value today, then the risk that the policy might be cut on Friday could be assessed. I would cash in but I'm no expert.


GG

collecting.dust

Hi there

We did ring and get the surrender value and it was £22,232.10 - so we would effectively have lost what the promise made up if we had surrendered.

We decided to risk leaving this.

Can you kind folks give me any indication of what those interim results announced yesterday ended up showing and whether they will have had much effect ?

EdInvestor

The interims are due next Wednesday.