Standard Life endowment

funlovin

Been to see IFA about Standard Life policy relating to mortgage - advice was to keep hold but would like some feedback because still not sure. Policy details as follows:
Homeplan fund name - Life With Profits Fund
Start date - 6.5.1992
Maturity date - 6.5.2012
Value 6.5.07 - £16533.87
Value 6.5.08 - £18559.27(fund value £14640.78 final bonus £3918.49)
Value today - £16325.58
Monthly payment into plan - £73.71
Target amount £33985

As of 6.5.08 projections were as follows
low rate £22900 intermediate £24400 high £26000 (Standard Life don't appear to use percentages)

Would appreciate any comment

EdInvestor

What interest rate are you paying on your mortgage?Please update the projections.

funlovin

Phoned Standard Life today and they said they would have to post me a statement showing projections and were unable to give me these figures over the phone.
Mortgage is a fixed rate of 5.29% but expires at the end of February fortunately.

Gorgeous_George

Have you had the new figure yet? Cuts announced on Tuesday.

I'd surrender but now the damage is done, you could keep it a month or two (at some risk). Register on their website and you can check your surrender value at (almost) any time.

GG

funlovin

Thanks for showing interest in my situation.

Finally received letter from Standard Life today dated 27.01.09 - value on that date showing £15322.65

Projections £19800 at 3.75% growth
£20900 at 5.5% growth
£22000 at 7.25% growth

Appreciate any feedback

tartanterra

Have you checked out the mis-sold thread?:rolleyes:

EdInvestor

funlovin wrote: »

Projections £19800 at 3.75% growth
£20900 at 5.5% growth
£22000 at 7.25% growth

If you surrendered the policy and used the lump sum to reduce the mortgage, also increasing the mortgage payment by the amount of the endowment premiums to maturity, then your equivalent return would be 20,612 with no risk.

Over the next 3 years it's likely that payouts will continue to fall, so you may be better to surrender now as there is no risk premium left in the policy.

If you need it, replace the life cover before you surrender.

dunstonh

If you need replacement life cover (and possibly CI cover) then you need to deduct the cost before you compare the options.

funlovin

Thanks to all for your advice - much appreciated.

I think surrendering the policy will be the best option for me

funlovin

Sorry - that last thread should have read

Thank you all for your opinions

pennine

I too have a Std life endowment and am registered on their site. I noticed a few months ago that my surrender value had fallen by nearly 2K it is slowly recovering however. Didn't think they could take money from a with profits scheme .